Best Innovative Companies to Own: 2023 Edition

Plus: Down more than 40% in 2023, this stock Is a buy for contrarians, beware of ESG risks in these 8 AI companies, and more. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=48843&elqTrackId=50dd81224a5f4d88b8c2c53fa285f488&elq=f6b5e0508be3462cb2d31ac679395ac1&elqaid=48843&elqat=1&elqCampaignId=24271) [Stock Strategist] Stock Strategist October 16, 2023 Good Morning! Here's what you need to know about stocks today. Economic Releases Scheduled for the Coming Week - Monday, Oct. 16 - Oct. Empire State Index (seasonally adjusted): 3.0 vs. 1.9 in Sept. - Tuesday, Oct. 17 - Sept. Retail Sales M/M: +0.25% vs. +0.60% in Aug. - President of the Federal Reserve Bank of New York to appear at the Economic Club of New York - Sept. Capacity Utilization [report]( (not seasonally adjusted): +79.5% vs. +79.7% in Aug. - Sept. Industrial Production [report]( (seasonally adjusted monthly rate): -0.1% vs. +0.4% in Aug. - Aug. Business Inventories (seasonally adjusted monthly rate): +0.2% vs. +0.0% in July - Oct. NAHB Housing Market Index (seasonally adjusted): 44.0 vs. 45.0 in Aug. - Wednesday, Oct. 18 - Sept. Housing Starts (seasonally adjusted annual rate): 1,380K vs. 1,283K in Aug. - President of the Federal Reserve Bank of New York to appear at Queens College - Thursday, Oct. 19 - Initial Unemployment Insurance Claims [report]( for the Week Ended Oct. 14 (seasonally adjusted): 210K vs. 209K on Oct. 7. - Oct. Federal Reserve Bank of Philadelphia Index: -7.0 vs. -13.5 in Sept. All consensus estimates are sourced from FactSet. Investor Relations Weekly Calendar: Highlighted Corporate Earnings and More - Tuesday, Oct. 17 - Corporate Earnings: Bank of America [BAC]( Johnson & Johnson [JNJ]( Goldman Sachs [GS]( BNY Mellon [BK]( - Wednesday, Oct. 18 - Corporate Earnings: Nasdaq [NDAQ]( U.S. Bancorp [USB]( Morgan Stanley [MS]( Procter & Gamble [PG]( Northern Trust [NTRS]( M&T Bank [MTB]( United Airlines [UAL]( Kinder Morgan [KMI]( Tesla [TSLA]( Netflix [NFLX]( - Investor Days/Meetings: Public Service Enterprise Group [PEG]( - Thursday, Oct 19 - Corporate Earnings: Taiwan Semiconductor [TSM]( American Airlines [AAL]( AT&T [T]( Fifth Third Bancorp [FITB]( - Investor Days/Meetings: Medtronic [MDT]( Merck [MRK]( Hewlett Packard [HPE]( - Friday, Oct. 20 - Corporate Earnings: American Express [AXP]( Huntington Bancshares [HBAN]( Schlumberger [SLB]( Regions Financial [RF]( For The Trading Week Ended October 13: - The Morningstar US Market Index rose 0.3%. - The best-performing sectors were energy, up 4.9%, and utilities, up 3.4%. - The worst-performing sector was consumer cyclicals, down 0.8%. - Yields on 10-year U.S. Treasuries fell to 4.63% from 4.79%. - West Texas Intermediate crude prices rose 9.26% to $87.69 per barrel. - Of the 852 U.S.-listed companies covered by Morningstar, 412, or 48%, were up, and 440, or 52%, were down. Which Stocks Are Up? Northrop Grumman [NOC]( Marathon Oil [MRO]( and Liberty Energy [LBRT](. Which Stocks Are Down? First Republic Bank [FRCB]( Wayfair [W]( and John Wiley & Sons [WLY](. And Don't Miss: - [Down More Than 40% in 2023, This Stock Is a Buy for Contrarians]( - [5 Best Cheap Stocks to Buy Under $5]( - [The Best Companies to Own]( Looking for more? Check out our weekly [Markets Brief](. Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [Best Innovative Companies to Own: 2023 Edition]( [Best Innovative Companies to Own: 2023 Edition]( These companies are expected to benefit from disruptive technologies. [Read More]( Share: [facebook]( [twitter]( [linkedin]( [What Rising Bond Yields Mean for Q3 Bank Earnings]( [What Rising Bond Yields Mean for Q3 Bank Earnings]( Bank stock performance in 2023 has been driven by rates and not other fundamentals. [Beware of the ESG Risks in These 8 AI Companies]( [Beware of the ESG Risks in These 8 AI Companies]( A look at which companies are best positioned to navigate an AI-based future. [Going Into Earnings, Is Bank of America Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Bank of America Stock a Buy, a Sell, or Fairly Valued?]( We’ll be closely watching net interest income for clues on the profitability outlook. [Going Into Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Tesla Stock a Buy, a Sell, or Fairly Valued?]( With likely lower profit margins and commentary on self-driving software, here’s what we’ll be looking for in Tesla’s earnings. [Down More Than 40% in 2023, This Stock Is a Buy for Contrarians]( [Down More Than 40% in 2023, This Stock Is a Buy for Contrarians]( We’re bullish on this cheap stock, which is 44% undervalued. Here’s why. [3 Cheap Dividend Stocks to Buy With Growth Potential]( [3 Cheap Dividend Stocks to Buy With Growth Potential]( These dividend stocks are trading at rare discounts to our fair value estimates. Susan Dziubinski [5 Best Cheap Stocks to Buy Under $5]( [5 Best Cheap Stocks to Buy Under $5]( The undervalued stocks of these companies with economic moats trade for less than a fin. [4 Stocks to Sell in Q4—and 4 Stocks to Buy Instead]( [4 Stocks to Sell in Q4—and 4 Stocks to Buy Instead]( Plus, an earnings season preview. David Sekera [Birkenstock IPO Stumbles After Pricing at $46]( [Birkenstock IPO Stumbles After Pricing at $46]( The footwear giant’s stock slides after going public at valuation over $8.5 billion. [ExxonMobil: Acquisition of Pioneer Done at Fair Price With Sound Strategic Fit]( [ExxonMobil: Acquisition of Pioneer Done at Fair Price With Sound Strategic Fit]( Valuations for ExxonMobil and Pioneer seem fair. We see no impediments to the deal closing in first-half 2024. [Why the Budget Deficit Suddenly Matters]( [Why the Budget Deficit Suddenly Matters]( A jump in Treasury debt issuance is playing a role in the rise in bond yields. [Best Financial-Services Companies to Own: 2023 Edition]( [Best Financial-Services Companies to Own: 2023 Edition]( What drives these firms’ competitive advantages varies by industry. [The Best Companies to Own: 2023 Edition]( [The Best Companies to Own: 2023 Edition]( These companies stand out from the competition and can be good places to invest your money long-term. [Best Sustainable Companies to Own: 2023 Edition]( [Best Sustainable Companies to Own: 2023 Edition]( We believe these companies’ strong ESG management practices give them a long-term advantage. [For Morningstar Investor Subscribers]( [For Morningstar Investor Subscribers]( Click here for your complete calendar of upcoming earnings, stock splits, economic reports and IPOs. Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Thanks for reading! Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602