The 5 Most Undervalued Defensive Stocks

Plus: Brace for a tough-talking Fed; top-performing TIPS funds; and earnings previews for Apple, Meta, Amazon.com, and more. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=46587&elqTrackId=78a577f3f7ef4d84b84aa1446dbf13ef&elq=cdb01847e3a344a59fc65016dcb7db08&elqaid=46587&elqat=1&elqCampaignId=22953) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this newsletter: - [Why You Should Expect Tough Talk Out of the Fed Meeting]( - [5 Most Undervalued Defensive Stocks]( - [Top-Performing TIPS Funds]( - [AT&T Stock Hit a 30-Year Low. Is It a Buy?]( - [3 To-Dos to Get the Most Out of Earnings Season]( - [Weekly Markets Planner: Economics Calendar, Company Earnings, and More]( On the surface, it may look like it was a quiet week in the stock market, with equities chipping away at additional gains, adding another 1% to the recovery from the October bear market low. But underneath we’re seeing lot of churn, with big, idiosyncratic moves among individual stocks driven by news, including earnings. Before we get to the earnings news, a key question still facing investors is what the Federal Reserve has in store for interest rates. For this week’s meeting, it’s deemed a virtual certainty that the Fed will raise rates again, and then for the next meeting, most expect a pause in rate hikes given the recent good news on inflation. However, market-watchers say investors should expect tough talk from the Fed. In our weekly Markets Brief, [we explain why](. Speaking of the week ahead, we’ve rolled out a new weekly markets calendar to help keep you up to date on key corporate and economic news. [Check it out](. Aside from the Fed, most of the attention is on earnings. We’ve got a look at how [Tesla]( and [Netflix]( fared during the second quarter, as well how [Apple]( [Amazon]( [Meta]( and [Alphabet]( are looking ahead of earnings, and what you should keep an eye on when those companies report. And if you’re someone who has a hard time making heads or tails of our earnings season—and don’t worry, you are FAR from alone—we’ve got [a great primer]( with three tips on how to get the most for your portfolio out of the quarterly earnings deluge. There has been lots of other interesting corporate news rippling through the stock market. Among the more interesting stories has been worries that telecom providers like Verizon and AT&T could be on the hook for massive liabilities from miles of lead covered cables across the country. These reports sent these already struggling stocks on a wild ride, with AT&T stock hitting a 30-year low. We’ve got a close look at the issue and whether AT&T stock is a [buy right now](. We also had some [crazy trading]( in Sirius XM this week. And of course we have our weekly stock screen, this time on the most [undervalued defensive stocks](. With many of these names out of favor amid the market’s bounce, it’s a good time to take a look at what has been left behind. Our fund screen this week: inflation-protected bond funds. We’ve got [five of the top performers]( for you. As always, for all our coverage check out the [Markets page]( on Morningstar.com and for live stock market updates. [5 Most Undervalued Defensive Stocks]( [5 Most Undervalued Defensive Stocks]( Well-known names such as Moderna, CVS, and Kraft Heinz are trading at discounted prices. Jülide Sengil [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Weekly Markets Planner: Economics Calendar, Company Earnings, and More]( [Weekly Markets Planner: Economics Calendar, Company Earnings, and More]( Fed rate decision, and earnings from Microsoft, Verizon, Alphabet, and Boeing on deck. Caryl Anne Francia [Why You Should Expect Tough Talk Out of the Fed Meeting]( [Why You Should Expect Tough Talk Out of the Fed Meeting]( Inflation may be turning, but Powell seen emphasizing that the fight isn’t over yet. Tom Lauricella [Earnings Season: 3 To-Dos for Navigating This Busy Period]( [Earnings Season: 3 To-Dos for Navigating This Busy Period]( Companies’ reporting periods can be more than just noise, so long as you have a strategy going in. Adam Fleck [So Far, So Good for Q2 Bank Earnings]( [So Far, So Good for Q2 Bank Earnings]( Banks face headwinds in deposit pricing and fees, but profitability and deposits are holding up well. [AT&T Stock Hit a 30-Year Low. Is It a Buy?]( [AT&T Stock Hit a 30-Year Low. Is It a Buy?]( Worries about lead pollution liability come at a time when telecom stocks have already been struggling. Michael Hodel [Is Alphabet Stock a Buy, a Sell, or Fairly Valued Ahead of Earnings?]( [Is Alphabet Stock a Buy, a Sell, or Fairly Valued Ahead of Earnings?]( Watching for AI’s impact on Google’s results and any signs of a second-half turnaround for advertising. Ali Mogharabi [Heading Into Earnings, Is Amazon Stock a Buy, Sell, or Fairly Valued?]( [Heading Into Earnings, Is Amazon Stock a Buy, Sell, or Fairly Valued?]( Focusing on AWS growth trends, Google advertising, and overall profitability in Q2 earnings. Dan Romanoff [Concentrated Stock Funds: Winners and Losers in 2023′s Market Rally]( [Concentrated Stock Funds: Winners and Losers in 2023′s Market Rally]( Baron and Pollen are among the focused funds that benefited from the narrow push higher in the stock market. Katherine Lynch [Nasdaq-100 Is Not an Index]( [Nasdaq-100 Is Not an Index]( But it’s a competitive investment. John Rekenthaler [Nasdaq-100 Rebalance: What It Means for Your Portfolio]( [Nasdaq-100 Rebalance: What It Means for Your Portfolio]( Plus, the pros and cons of investing in money market funds and CDs, and JPMorgan’s upgraded outlook for 2023. Morningstar [10 Rebel Funds to Diversify Your Portfolio]( [10 Rebel Funds to Diversify Your Portfolio]( These rebels have a cause. Russel Kinnel [Why Large-Blend Funds Should Outweigh Value Plus Growth Funds in a Portfolio]( [Why Large-Blend Funds Should Outweigh Value Plus Growth Funds in a Portfolio]( When it comes to style investing, the sum of the parts isn’t greater than the whole. Amy C. Arnott [Is It Time to Break Up With the Bonds in Your Portfolio?]( [Is It Time to Break Up With the Bonds in Your Portfolio?]( What to do as cash rates near 5%. Madeline Hume [5 Top-Performing TIPS Funds]( [5 Top-Performing TIPS Funds]( Short-duration TIPS funds from Vanguard and iShares delivered for investors through a difficult market. Sadhika R. Thapa [4 Stocks to Avoid in Q3 2023]( [4 Stocks to Avoid in Q3 2023]( Plus, what to expect as earnings season kicks off. Susan Dziubinski, David Sekera [Dave Sekera: Taking the Market’s Temperature]( [Dave Sekera: Taking the Market’s Temperature]( Morningstar’s chief U.S. market strategist weighs in on the value/growth divide, the ‘Magnificent 7,’ and what’s under- and overvalued today. Christine Benz, Jeff Ptak Chart of the Week [Is Microsoft a Buy, Sell, or Fairly Valued Ahead of Earnings?]( [Is Microsoft a Buy, Sell, or Fairly Valued Ahead of Earnings?]( Focus on areas including Azure growth, discussion of AI, and the impact of layoffs. Dan Romanoff [Read More]( Share: [facebook]( [twitter]( [linkedin]( Earnings [Sirius XM Stock Swings Wildly on Short Squeeze; No Change to Underlying Business or Valuation]( [Johnson & Johnson: Broad Portfolio Strength Drives Solid Results]( [Tesla: Profit Margins Contract for Third Straight Time, Driven by Price Cuts]( [Netflix: Solid Results as Paid Sharing Boosts Subscriber Growth]( [PNC: Funding Pressure Remains, but Smaller Changes to Outlook]( [Fifth Third: Net Interest Income Outlook Softens]( [Truist Financial: Expenses and Revenue Both Moving in the Wrong Direction]( [Discover: Compliance Issues Overshadow Decent Results]( [Citigroup: Higher Rates Boost Net Interest Income, but That Lift to Revenues Will Likely Fade]( [Charles Schwab: Additional Expense Savings and Reduction in High-Cost Funding Are Positives]( [Northern Trust: Net Interest Income Not as Bad as Feared, and Some Expense Improvement]( [American Airlines: As Fleet Grows, So May Risk of Chasing Share]( [United Airlines: Robust Q2, but Costs Rising on Upgrades and New Labor Agreements]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. 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