Best Value Stocks for the Long Term

Why bond yields keep rising, 5 themes for the stock market in Q4, 3 cheap basic materials stocks. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=48275&elqTrackId=4c6c654585c64278bff1b751dd0cff97&elq=03f786110efd4dfb82a78da39b14f1b6&elqaid=48275&elqat=1&elqCampaignId=23913) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [5 Themes for the Stock Market Heading Into Q4]( - [Why Do Bond Yields Keep Rising?]( - [10 Best Value Stocks to Buy for the Long Term]( - [3 High-Quality Undervalued Basic Materials Stocks]( - [Fed Signals Higher Rates for Longer, but We Expect Aggressive Cuts in 2024]( From boom to bust in the span of a week. Well, maybe it’s not that extreme, but we’ve seen quite the change in sentiment from last week’s IPO frenzy to a distinct cooling of the animal spirit thanks to the Federal Reserve’s “higher for longer” outlook. At first things were chugging along, with strong demand for grocery app [Instacart’s IPO]( on Monday and marketing software company [Klaviyo’s IPO]( on Tuesday. Then came the Fed meeting, which proved a downer for the bond market and helped take the wind out of the stock market’s sails. Interest rates in some parts of the bond market are now at their highest levels since 2007. Why? Take a look at my explainer about this new [bond market sell-off here](. Rising bond yields are throwing a monkey wrench into the stock market’s outlook. But it’s just one of the factors that could set the tone as we head into the final months (!) of 2023. Sarah Hansen lays out [five themes for investors to keep an eye on]( for the fourth quarter. Of course, expectations about interest rates are just that: expectations. Preston Caldwell, Morningstar’s senior U.S. economist, has a different view. He believes the Fed will aggressively cut rates in 2024. You can find out why [here](. Meanwhile, irrespective of the shorter-term swings in market sentiment, there are opportunities for long-term investors. This past week, Susan Dziubinski put out a list of the best value stocks to buy for the long term. Among the [10 names on the list]( are Pfizer and Comcast. For our weekly stock screen, we went basic – basic materials, that is. We screened for high-quality names in the sector and came up with [three stocks](. And for our weekly fund screen, we combed through tech stock ETFs to find those with the [best performance]( over the last one-, three-, and five-year time frames. That's it for the week! As always, check out our [Markets page]( for our latest coverage and live stock market updates, along with our [weekly calendar]( of key upcoming data and events. Did a friend forward this email? [Sign up here](. [10 Best Value Stocks to Buy for the Long Term]( [10 Best Value Stocks to Buy for the Long Term]( The stocks of these high-quality companies look cheap today. Susan Dziubinski [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( New GDP and home sales data, plus earnings from Costco and Nike. Tom Lauricella [5 Themes for the Stock Market Heading Into Q4]( [5 Themes for the Stock Market Heading Into Q4]( Key issues include rising bond yields and tech stock performance. Sarah Hansen, Katherine Lynch [Why Do Bond Yields Keep Rising?]( [Why Do Bond Yields Keep Rising?]( ‘Higher for longer’ is Wall Street’s newest catchphrase. Tom Lauricella [Large-Growth Active Fund Managers Have Faced an Uphill Battle]( [Large-Growth Active Fund Managers Have Faced an Uphill Battle]( Why they’ve failed to beat their benchmark’s huge gains over the long run. Robby Greengold [2 Reasons to Choose Economic Moats Over Quality in ETFs]( [2 Reasons to Choose Economic Moats Over Quality in ETFs]( Eight undervalued wide-moat stocks that may be off ETFs’ radar. Adam Fleck [Is This New Dividend Aristocrat Yielding 7% a Buy?]( [Is This New Dividend Aristocrat Yielding 7% a Buy?]( This wide-moat company has raised its dividend for 25 years in a row. Stephen Ellis [Instacart IPO Jumps After Pricing at $30 ]( [Instacart IPO Jumps After Pricing at $30]( A ‘well-positioned’ company, but at a higher price in a competitive industry. Sarah Hansen [Klaviyo Pops 9% in IPO After Pricing at $30, Above Expected Range]( [Klaviyo Pops 9% in IPO After Pricing at $30, Above Expected Range]( A ‘best-in-class’ marketing tech company with strong revenue growth. Sarah Hansen [After Earnings, Is Adobe Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Adobe Stock a Buy, a Sell, or Fairly Valued?]( With good results and strong revenue growth, here’s what we think of Adobe stock. Dan Romanoff [10 Best Blue-Chip Stocks to Buy for the Long Term]( [10 Best Blue-Chip Stocks to Buy for the Long Term]( The stocks of these high-quality companies with large market capitalizations look undervalued today. Susan Dziubinski [How to Use Cash in a Portfolio]( [How to Use Cash in a Portfolio]( A look at the pros and cons of the safest asset class, plus our favorite options. Amy Arnott [We Expect Faster Pace of Interest-Rate Cuts Than the Fed]( [We Expect Faster Pace of Interest-Rate Cuts Than the Fed]( Plus, the takeaway for investors as the Fed ‘proceeds carefully.’ Preston Caldwell, Ivanna Hampton [5 Top-Performing Technology ETFs]( [5 Top-Performing Technology ETFs]( Offerings from iShares and Invesco lead the pack. Sadhika Thapa [3 High-Quality Undervalued Basic Materials Stocks]( [3 High-Quality Undervalued Basic Materials Stocks]( Notable names are trading at discounted prices. Jülide Sengil [5 Undervalued Biopharma Companies: Our 5-Year Forecast]( [5 Undervalued Biopharma Companies: Our 5-Year Forecast]( We expect innovation and moats will help the biopharma industry outrun patent expirations. Karen Andersen [‘Dumb Money’ and the Myth of the Wall Street Underdog]( [‘Dumb Money’ and the Myth of the Wall Street Underdog]( What the movie misses about the GameStop frenzy. John Rekenthaler Chart of the Week [6 Charts On Where Bond Fund Investors Are Putting Their Money]( [6 Charts On Where Bond Fund Investors Are Putting Their Money]( Investors are choosing safer funds and eschewing short-term ones. Katherine Lynch [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Cisco: We Maintain Our $56 Fair Value Estimate, as the Acquisition of Splunk Is a Solid Move]( [FedEx: Global Package Demand Still Sluggish, but Ground Margins Impress]( [International Flavors & Fragrances: Shares Rally on Amended Debt Covenant Agreement]( [Disney: Increased Capital Investment in Theme Parks Builds on Key Competitive Advantages]( Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. 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