Undervalued by 34%, This Is One of the Best Stocks to Buy in Its Sector

Plus: 10 best value stocks to buy for the long term, the advantage for stocks when inflation rises, and growth opportunities in AI investing. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=50588&elqTrackId=d47757613fff4beabcdc2085e78d7473&elq=cb3bbf20ec5644d09c2b9a1f2e99ade3&elqaid=50588&elqat=1&elqCampaignId=25339) [Stock Strategist] Stock Strategist December 18, 2023 Good Morning! Here's the rundown on what's happening in the stock market. Not only didn’t the Federal Reserve disappoint investors last week, the stock and bond market bulls took expectations for interest rate cuts in 2024 and ran with them. Stocks are now just 3% away from hitting a new all-time high, which also means the market has nearly recovered all the ground lost in the 2022 bear market. Quite the feat in just over a year. The catalyst for last week’s 2.7% rally in the Morningstar US Market Index was of course the Fed, as it [signaled that not only is it likely done raising rates]( but that officials expect three rate cuts in 2024. Here at Morningstar, Preston Caldwell, our chief U.S. economist expects even more, [calling for six cuts next year](. The Fed was a big driver of this year’s bounce in the markets. For a recap of the year’s biggest stories, check out [our weekly Markets Brief](. For dividend-stock investors, we’ve got three great articles to check out. We have our latest [screen of undervalued stocks that just raised dividends]( a recap of the year in dividend stocks including a look at [high-dividend strategies]( vs. dividend growth, and our updated list of the [10 best dividend stocks](. Economic Releases Scheduled for the Coming Week - Tuesday, Dec. 19 - November [Housing Starts]( Report: 1,370K vs. 1,372K in October - Wednesday, Dec. 20 - December [Consumer Confidence]( Survey: 104.9 vs. 102.0 in November - Thursday, Dec. 21 - Initial Unemployment Insurance Claims [report]( for the week Ended Dec. 16: 216K vs. 202K for the week ended Dec. 9 - December [Philadelphia Fed Index]( -3.0 vs. -5.9 in November - November [Leading Indicators]( -0.45% vs. -0.8% in October - Friday, Dec 22 - November [Consumer Spending]( N/A vs. +0.2% in October - November [Personal Income]( +0.4% vs. +0.2% in October - November [New Home Sales]( 680K vs. 679K in October All consensus estimates are sourced from FactSet. Investor Relations Weekly Calendar: Highlighted Corporate Earnings and More - Thursday, Dec. 21 Corporate Earnings: Nike [NKE]( For The Trading Week Ended December 15: - The Morningstar US Market Index rose 2.7%. - The best-performing sectors were real estate, up 5.3%, and basic materials, up 4.6%. - The worst-performing sectors were communication services and utilities, each up 0.9%. - Yields on 10-year U.S. Treasury notes fell 3.91% from 4.23%. - West Texas Intermediate crude prices ticked up 0.5% to $71.58 per barrel. - Of the 849 U.S.-listed companies covered by Morningstar, 695, or 82%, were up, and 154, or 18%, were down. Which Stocks Are Up? SunPower [PWR]( DocuSign [DOCU]( Enphase Energy [ENPH]( and Lumen Technologies [LUMN](. Which Stocks Are Down? Pfizer [PFE]( Oracle [ORCL]( Exelon [EXC]( Cheniere Energy Partners [CQP]( and Farfetch [FTCH](. And Don't Miss: - [What Looks Cheap and Dear in Today’s Market]( - [Undervalued by 34%, This Is One of the Best Stocks to Buy in Its Sector]( - [The Year in Dividend Stocks]( - [4 Undervalued Stocks That Just Raised Their Dividends]( Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [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. Margaret Giles [Read More]( Share: [facebook]( [twitter]( [linkedin]( [Undervalued by 34%, This Is One of the Best Stocks to Buy in Its Sector]( [Undervalued by 34%, This Is One of the Best Stocks to Buy in Its Sector]( Shares of this wide-moat company are a rare bargain in an otherwise overvalued part of the market. William Kerwin [Ben Inker: What Looks Cheap and Dear in Today’s Market]( [Ben Inker: What Looks Cheap and Dear in Today’s Market]( GMO’s head of asset allocation reflects on the quality anomaly, why value stocks are the cheapest they’ve been in years, and whether it really is different this time for Japanese equities. Christine Benz, Dan Lefkovitz [The Year in Dividend Stocks]( [The Year in Dividend Stocks]( What’s driving dramatic performance differences between dividend stocks and the broader market. David Harrell, Dan Lefkovitz [4 Undervalued Stocks That Just Raised Their Dividends]( [4 Undervalued Stocks That Just Raised Their Dividends]( Evergy and Huntington Ingalls are are among the stocks with higher payouts. Tom Lauricella [3 of the Best Stocks for Value Investors to Buy Now]( [3 of the Best Stocks for Value Investors to Buy Now]( These cheap stocks from companies with wide economic moats look attractive for 2024. Susan Dziubinski [The 10 Best Dividend Stocks]( [The 10 Best Dividend Stocks]( These undervalued stocks with reliable dividends are worth considering. Susan Dziubinski [20 Best Healthcare Companies to Invest In]( [20 Best Healthcare Companies to Invest In]( These companies largely earn their competitive advantage from intangible assets, and their stocks are great choices for an investor’s watchlist. Emelia Fredlick, Benjamin Slupecki [The Advantage for Stocks When Inflation Rises]( [The Advantage for Stocks When Inflation Rises]( How stock and bond prices work when inflation is an ongoing possibility. John Rekenthaler [Green Technology Stocks That Look Cheap]( [Green Technology Stocks That Look Cheap]( Samsung SDI and First Solar are trading at a discount within the Morningstar Global Emerging Green Technologies Select 30 Index. Muskaan Hemrajani [Where Are the Growth Opportunities in AI Investing?]( [Where Are the Growth Opportunities in AI Investing?]( Investing in artificial intelligence brings risk, but there will be winners. David Sekera, Grady Burkett, Kenneth Lamont [After Earnings, Is MongoDB Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is MongoDB Stock a Buy, a Sell, or Fairly Valued?]( With higher-than-expected margin expansion, here’s what we think of MongoDB stock. Julie Bhusal Sharma [Best Innovative Companies to Own: 2024 Edition]( [Best Innovative Companies to Own: 2024 Edition]( These companies are expected to benefit from disruptive technologies. Margaret Giles [The 4 Biggest Market Stories of 2023 — and What’s Next in 2024]( [The 4 Biggest Market Stories of 2023 — and What’s Next in 2024]( This year was all about the Fed and what turned out to be an “everything rally.” Sarah Hansen [Charlie Munger, Warren Buffett Built Berkshire Hathaway to Thrive After They’re Gone]( [Charlie Munger, Warren Buffett Built Berkshire Hathaway to Thrive After They’re Gone]( Plus, what the holiday shopping season could reveal about consumer spending in 2024. Sarah Hansen, Ivanna Hampton [5 Cheap Stocks to Buy Before Interest Rates Fall Further]( [5 Cheap Stocks to Buy Before Interest Rates Fall Further]( Plus, a rating change for Apple and our 2024 bond market outlook. David Sekera, Susan Dziubinski [Best Sustainable Companies to Own: 2024 Edition]( [Best Sustainable Companies to Own: 2024 Edition]( We believe these companies’ strong ESG management practices give them a long-term advantage. Emelia Fredlick, Leslie Norton 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