4 Energy Stocks Left Behind in the Big Rally

Plus: Funds hit by Alphabet’s plunge, how the Magnificent 7 are doing, and is Apple a buy? [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=49157&elqTrackId=7a41f80202da4985947b11cb767a6897&elq=31a41e63a4e14d5aac9445699f9e05bb&elqaid=49157&elqat=1&elqCampaignId=24484) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [These Energy Stocks Were Left Behind in the Big Rally]( - [What’s Going On With the Magnificent Seven?]( - [Which Funds and ETFs Took a Hit From Alphabet Stock’s Slide?]( - [Going Into Earnings, Is Apple Stock a Buy, Sell, or Fairly Valued?]( - [Q3 GDP Report: U.S. Economy Grows Faster Than Expected]( As stocks hit official "correction" territory, down 10% from their July 31 high, the past week was all about earnings. But the coming week is one heck of a big week on the economic front. When it came to earnings, we heard from some of the market’s big dogs: [Microsoft]( [Amazon]( Facebook parent [Meta]( and Google parent [Alphabet](. Results were a mixed bag. Investors gave a thumbs up to Microsoft and Amazon but weren't thrilled with Meta and Alphabet. “Not thrilled” is certainly an understatement when it came to Alphabet, which lost nearly 10% on Wednesday, its biggest drop since the stock market collapsed in March 2020. Given that Alphabet is one of the most widely held stocks, if you own a stock fund, you felt it. For some funds that have been placing big bets on Alphabet, it was an especially big hit. Which funds? Katherine Lynch [takes a look]( at the funds suffering the biggest dent from the stock’s drop. You might remember that these four stocks—along with Nvidia, Tesla, and Apple—are among those dubbed earlier this year as the Magnificent 7. These stocks were responsible for almost the entire stock market rally during the first half of 2023. So how have these names been performing lately? [Sarah Hansen digs into the performance]( numbers to see if they’re still magnificent. Meanwhile, Apple earnings are still on their way, due Thursday afternoon. Apple stock has been struggling lately, and we’ve got a read on what investors should be watching for in the tech giant’s results, along with whether Morningstar analyst [Brian Colello thinks the stock is currently a buy](. One sector that has rocketed higher this year is energy stocks. This sector is on a three-year tear, gaining some 200%. If there’s a must-read this weekend, it’s Lauren Solberg’s [deep dive]( into which energy stocks have been leading the rally, why, and which energy stocks still have room to run. There are some great charts in this piece that help tell the tale. As I mentioned, the markets have a big week coming up. We’ll have the Federal Reserve’s latest decision on rates Wednesday afternoon, along with the Treasury Department’s announcement of how much money it will have to borrow this quarter. (As [we wrote recently, the budget deficit]( is suddenly a big deal in the bond market as yields pushed above [5% this past week]( Then on Friday, we’ve got the always important monthly jobs report. To help keep track of what you need to know, we’ve got our calendar of upcoming key economic and corporate news [here](. That’s it for this week! As always, check out our [Markets page]( for our latest coverage and live stock market updates. Did a friend forward this email? [Sign up here](. [4 Energy Stocks Left Behind in the Big Rally]( [4 Energy Stocks Left Behind in the Big Rally]( These stocks more than doubled over the past three years, but Morningstar analysts see a few names with room to run. Lauren Solberg [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [What’s Going On With the Magnificent Seven?]( [What’s Going On With the Magnificent Seven?]( The market’s biggest names haven’t escaped the sting of rising rates. Sarah Hansen [Q3 GDP Report: US Economy Grows Faster Than Expected]( [Q3 GDP Report: US Economy Grows Faster Than Expected]( Consumer spending led the way but is expected to fade in the next quarters. Preston Caldwell, Ivanna Hampton [Which Funds and ETFs Took a Hit From Alphabet Stock’s Slide?]( [Which Funds and ETFs Took a Hit From Alphabet Stock’s Slide?]( Growth-focused funds and communications sector ETFs are the largest holders. Katherine Lynch [After Earnings, Is Verizon Stock a Buy, Sell, or Fairly Valued?]( [After Earnings, Is Verizon Stock a Buy, Sell, or Fairly Valued?]( With an improved outlook for cash flow, the dividend is looking attractive. Michael Hodel [Going Into Earnings, Is Apple Stock a Buy, Sell, or Fairly Valued?]( [Going Into Earnings, Is Apple Stock a Buy, Sell, or Fairly Valued?]( IPhone sales, artificial intelligence advancement, and services will be key areas to watch in Apple’s earnings report. Brian Colello [7 Top-Performing Active Stock ETFs]( [7 Top-Performing Active Stock ETFs]( ETFs from Vanguard, JPMorgan, and Bridgeway are among the category’s leaders. Sadhika R. Thapa [3 Hottest-Selling Funds]( [3 Hottest-Selling Funds]( Should you join the crowd or run away? Russ Kinnel [Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?]( [Going Into Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?]( With lithium pricing uncertain, here’s what we think of Albemarle stock. Seth Goldstein [Going Into Earnings, Is Palantir Stock a Buy, Sell, or Fairly Valued?]( [Going Into Earnings, Is Palantir Stock a Buy, Sell, or Fairly Valued?]( Watching billings around Palantir’s AI offering and customer retention. Malik Ahmed Khan [After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Netflix Stock a Buy, a Sell, or Fairly Valued?]( With the crackdown on password sharing and high levels of subscriber additions, here’s what we think of Netflix’s stock. Matthew Dolgin [The 10-Year Treasury Yield Tops 5%. Now What?]( [The 10-Year Treasury Yield Tops 5%. Now What?]( Here’s what it may mean for bond and stock investors. David Sekera, Susan Dziubinski [4 Undervalued Large-Cap Stocks to Buy After Earnings]( [4 Undervalued Large-Cap Stocks to Buy After Earnings]( Plus, earnings to watch for from the tech titans. David Sekera, Susan Dziubinski [Nizar Tarhuni: The State of Private Markets and Venture Capital Investing]( [Nizar Tarhuni: The State of Private Markets and Venture Capital Investing]( PitchBook’s head of research on what predicts performance in private markets, the effect of rising rates on deal-making, and more. Christine Benz, Jeff Ptak [Large-Value Funds on Track for Worst-Ever Year of Outflows]( [Large-Value Funds on Track for Worst-Ever Year of Outflows]( Outflows from passive funds exacerbate the category’s woes. Katherine Lynch [Which Popular Funds Could Hand Their Shareholders Big Tax Bills?]( [Which Popular Funds Could Hand Their Shareholders Big Tax Bills?]( What investors need to know about capital gains distribution estimates. Stephen Welch [Do Equities Improve With Age?]( [Do Equities Improve With Age?]( Revisiting a 60-year-old argument. John Rekenthaler Chart of the Week [Spot Bitcoin ETFs Inch Closer to Their Debut]( [Spot Bitcoin ETFs Inch Closer to Their Debut]( Amid flying rumors and fake news, signals are stronger than ever for SEC approval. [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Microsoft: All Segments Are Good, With Azure Expected to Remain Strong Throughout 2024]( [Amazon: E-Commerce Improves, AWS Stabilizes, and Margins Surge]( [Meta: Still Impressive but the Stock Remains Fairly Valued]( [Alphabet: Google Search and YouTube Are Strengthening, and Cloud Is Likely to Accelerate]( [ServiceNow: Monster Quarter for U.S. Federal Drives Overall Strength, While AI Arrives]( [Coca-Cola: Innovation and Brand Investment Buoyed Sales Expansion]( [Snap: User Growth Continues, but Monetization Slower Than Anticipated]( [GM: UAW Strike Not a Huge Hit to Q3, but Q4 Damage May Be Billions]( [GE: Stock Should Move Even Higher on Superb Report]( [Visa: Quarter Largely Maintains Recent Trends]( [Mastercard: Growth Stays Healthy but Decelerates Modestly]( [TransUnion: Soft September Weighs on Outlook, but We Believe Market Is Overreacting]( [Regions Financial: Market May Be Overreacting to Net Interest Income Headwinds]( [Boeing: Disappointing Quarter Shows Recovering From Existential Crisis Takes Time]( [Ford: Excellent Pro Segment Profit but Also Continued Cost Headwinds]( 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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