7 Undervalued Consumer Defensive Stocks

Plus: Jobs data suggests rate hikes are history, seeing if it’s time to buy small caps, and our November market outlook. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=49374&elqTrackId=2d761c0516084ac2a7cc95bf18642bec&elq=9fc7b82039654bffbf5abed82d875cb0&elqaid=49374&elqat=1&elqCampaignId=24605) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [7 Undervalued Consumer Defensive Stocks]( - [Stock Market Falling Deeper Into Undervalued Territory]( - [October Jobs Report May Clear the Way for the Fed to End Rate Hikes]( - [How Have the Magnificent Seven’s Earnings Been Looking?]( - [Is It Finally Time to Buy Small-Cap Stocks?]( Risk on! The verdict from the markets on Friday was that it’s safe to venture into riskier investments, at least for now. Credit the combination of the Federal Reserve meeting and Friday’s jobs report, which sent stocks barreling higher to end the week. Setting the stage for the end-of-the-week rally was the Fed meeting that wrapped up Wednesday. As anticipated, the central bank kept rates steady, but the focus was always going to be chair Jerome Powell’s press conference and the tea leaves he provided investors about the outlook. Morningstar chief U.S. economist Preston Caldwell noted that Powell kept the door open to another rate cut, but Caldwell doesn’t think that will be in the cards. Find his take on the meeting and the outlook for [interest rates here](. But it turned out the Fed meeting was merely setting the stage for the response to Friday’s jobs report. On the surface, the data wasn’t that far off from what had been expected. But as [Lauren Solberg writes]( under the hood, it had some good news for investors about the economy, the Fed, and the question of whether another rate hike is on the way. The Fed and jobs report came during another hectic week for corporate earnings. With the release of [Apple’s earnings on Thursday]( we’ve now seen results from six of the “Magnificent Seven” companies. These stocks are still having a big influence on your portfolio, and we put together [what our analysts think about the latest results and outlooks]( for all these stocks in one place. As to where we go from here, Morningstar chief U.S. market strategist David Sekera offers his take on the outlook for stocks, [whether the market is cheap]( and where the opportunities are. We’ve also got our weekly Markets Brief, in which Sarah Hansen [asks whether it’s finally time to buy small-cap company stocks](. Judging by the monster rally in the group Friday, some investors think the answer is yes. But we spoke to some folks who explain why they aren’t quite as sure. Lastly, we’ve got a look at an often-dull but currently very interesting sector: consumer defensive stocks. This group includes both big low-cost retailers and packaged-good food companies. They’re being hit by some unusual crosscurrents, including the growing availability of obesity drugs. Still, for long-term investors, there are opportunities to be found, and we’ve got [seven undervalued stocks to consider](. That’s it for this 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](. [7 Undervalued Consumer Defensive Stocks]( [7 Undervalued Consumer Defensive Stocks]( Worries about obesity drugs and consumers tightening their belts have been a headwind for the sector. Jülide Sengil [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Is It Finally Time to Buy Small-Cap Stocks?]( [Is It Finally Time to Buy Small-Cap Stocks?]( The Fed’s ‘higher for longer’ strategy could be a key factor for the smallest players in the market. Sarah Hansen [Fed Focused on Higher for Longer, But Rate Cut Talk Likely Coming]( [Fed Focused on Higher for Longer, But Rate Cut Talk Likely Coming]( Plus, higher bond yields will likely take a while to filter into the U.S. economy. Preston Caldwell, Ivanna Hampton [October Jobs Report May Clear the Way for the Fed to End Rate Hikes]( [October Jobs Report May Clear the Way for the Fed to End Rate Hikes]( Hiring growth slowed last month, but it remains healthy. Lauren Solberg [How Have Magnificent Seven Earnings Been Looking?]( [How Have Magnificent Seven Earnings Been Looking?]( These mega-sized stocks (and their results) continue to play a big role in overall market returns. Tom Lauricella [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( Disney and Uber earnings; Fed loan officer survey on deck. Tom Lauricella [Stock Market Falling Deeper Into Undervalued Territory]( [Stock Market Falling Deeper Into Undervalued Territory]( Stocks have retreated since hitting fair value at end of July and are now looking very undervalued on historical perspective. Dave Sekera [4 Tech-Heavy Funds to Watch]( [4 Tech-Heavy Funds to Watch]( Large technology stakes bring volatility risk. Sachin Nagarajan [5 Short-Term Bond Funds That Consistently Deliver]( [5 Short-Term Bond Funds That Consistently Deliver]( What makes these funds unique? Paul Olmsted [Fractional Real Estate Investing: What Investors Should Know]( [Fractional Real Estate Investing: What Investors Should Know]( Democratizing real estate is an intriguing concept, but some jump scares lurk in the fine print. Madeline Hume [3 Undervalued Defensive Stocks to Buy—and a Pick You Wouldn’t Expect]( [3 Undervalued Defensive Stocks to Buy—and a Pick You Wouldn’t Expect]( Plus, the Fed’s next move and earnings reports we’re watching for. David Sekera, Susan Dziubinski [TIPS Versus I Bonds]( [TIPS Versus I Bonds]( I Bonds boast tax advantages, but purchase limits reduce appeal. Christine Benz [3 Hottest-Selling ETFs]( [3 Hottest-Selling ETFs]( Investors have flocked to these funds, but are they worth the attention? Ryan Jackson [JL Collins: The Many Paths to Financial Independence]( [JL Collins: The Many Paths to Financial Independence]( The ‘godfather of the FI movement’ discusses the key takeaways from his latest book, where he turns for financial wisdom, and what higher yields mean for investors. Christine Benz, Jeffrey Ptak [After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Microsoft Stock a Buy, a Sell, or Fairly Valued?]( With AI driving demand and strong expectations for Azure growth, here’s what we think of Microsoft stock. Dan Romanoff [Is Apple Stock a Buy After Earnings?]( [Is Apple Stock a Buy After Earnings?]( Solid results and a decent outlook, but Apple stock modestly overvalued. Brian Colello [After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?]( With the cloud market becoming more segmented, here’s what we think of Alphabet stock. Ali Mogharabi [After Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Meta Stock a Buy, a Sell, or Fairly Valued?]( With impressive operating efficiency, here’s what we think of Meta’s stock. Ali Mogharabi [After Earnings, Is Boeing Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Boeing Stock a Buy, a Sell, or Fairly Valued?]( As Boeing works toward more stability, here’s what we think of the aerospace giant’s stock. Nicolas Owens [After Earnings, Is General Electric Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is General Electric Stock a Buy, a Sell, or Fairly Valued?]( With strong aerospace demand and improving supply chain issues, here’s what we think of GE stock. Joshua Aguilar Chart of the Week [7 Market Trends From Q3 2023]( [7 Market Trends From Q3 2023]( Which stocks look undervalued after a volatile quarter. 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