The Best and Worst Stocks in 2023

Plus: 33 undervalued stocks, 15 charts on a surprisingly good year, and top sector stock picks. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=50864&elqTrackId=a554f960214644deb8d31724e0ba7f9a&elq=5c71cf43979447d0b2f53ef4332014e0&elqaid=50864&elqat=1&elqCampaignId=25509) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [33 Undervalued Stocks]( - [15 Charts On the Surprise ‘Everything Rally’ for 2023]( - [2023 In Review and 2024 Market Outlook]( - [Strong December Jobs Report Surprises, but Overall Labor Market Is Slowing]( - [Top-Performing Stocks of 2023]( - [The Worst-Performing Stocks of 2023]( 2024 has started off with a little bit of turbulence for the markets, but after a banner year, that shouldn’t come as a surprise. In fact, even as the December jobs report came in hotter than forecast, it appears to have only cemented the narrative for the economy that was built in the final months of 2023. As [Sarah Hansen highlights]( we’re talking about the elusive “soft landing.” Before we get any further into the new year, this past week, we continued to look back at the market trends that drove your portfolio in 2023. First off, we’ve got our [charts-driven recap here]( which provides a broad overview of key trends in stocks, bonds, and just about everything else. Then we get into the nitty-gritty, looking at the [top-performing stocks of 2023]( (surprisingly, the best performer wasn’t Nvidia), as well as the [worst performers]( (sorry, Plug Power and Pfizer). When it comes to mutual funds, we’ve got our recap of the big winners and losers in [stock funds]( and [bonds funds](. And for what’s most likely to be in your portfolio, we looked at [how the biggest stock funds fared in 2023]( as well as the [biggest bond funds](. Looking forward, this week we rolled out our stock sector outlooks, with our analysts highlighting their top picks. That includes the red-hot [technology]( and [communications services]( sectors, as well as some lagging parts of the market where there are more opportunities these days, such as [utilities](. You can find all our sector outlooks, as well as all our year-end and year-ahead outlooks, [right here](. This includes Susan Dziubinski’s update of her screen for [33 undervalued stocks,]( along with Morningstar’s [contrarian fund picks for 2024](. 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](. [Top-Performing Stocks of 2023]( [Top-Performing Stocks of 2023]( Coinbase, Nvidia, Palantir, and other tech names dominate the list of the year’s best stocks. Bella Albrecht [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [The Worst-Performing Stocks of 2023]( [The Worst-Performing Stocks of 2023]( SolarEdge, Plug Power, Moderna, and Pfizer are among the year’s biggest losing stocks. Bella Albrecht [2023 In Review and 2024 Market Outlook]( [2023 In Review and 2024 Market Outlook]( Our analysts put stock market performance trends, along with bonds and funds, into perspective—and look ahead with a fresh market outlook for 2024. Tom Lauricella [33 Undervalued Stocks]( [33 Undervalued Stocks]( Here’s the new list of Morningstar’s top underpriced analyst picks to buy for 2024. Susan Dziubinski [How the Largest Bond Funds Did In 2023]( [How the Largest Bond Funds Did In 2023]( Dodge & Cox Income, PGIM Total Return lead, while Vanguard Short-Term Bond lags. Bella Albrecht [Strong December Jobs Report Surprises, but Overall Labor Market Is Slowing]( [Strong December Jobs Report Surprises, but Overall Labor Market Is Slowing]( Despite hotter-than-expected hiring gains, Fed rate cuts remain on the table for 2024. Sarah Hansen [15 Charts On the Surprise ‘Everything Rally’ for 2023]( [15 Charts On the Surprise ‘Everything Rally’ for 2023]( The stock and bond markets turned in an unexpected banner year. Tom Lauricella, Lauren Solberg [2023’s Best-Performing U.S. Stock Funds]( [2023’s Best-Performing U.S. Stock Funds]( Fueled by the ‘Magnificent Seven’ stocks, growth funds take the lead. Katherine Lynch [Active Equity Funds’ Triumphs and Trials Over the Past Year]( [Active Equity Funds’ Triumphs and Trials Over the Past Year]( We take a look back at stock funds’ successes and struggles during 2023. Robby Greengold [Communication Services: Surge In Digital Advertising Impressive, but Expect Moderation In 2024]( [Communication Services: Surge In Digital Advertising Impressive, but Expect Moderation In 2024]( Our favored stocks here include Verizon, Disney, and Comcast. Michael Hodel [Technology Sector Outlook: A Top Performer With Limited Buying Opportunities]( [Technology Sector Outlook: A Top Performer With Limited Buying Opportunities]( We believe the best tech stocks include Snowflake, Cognizant, and Teradyne. Dan Romanoff, Eric Compton [Utilities: Will the Sector Reset or Repeat In 2024?]( [Utilities: Will the Sector Reset or Repeat In 2024?]( Our top picks in this sector are NiSource, Entergy, and WEC Energy Group. Travis Miller, Andrew Bischof [Contrarian Fund Picks for 2024]( [Contrarian Fund Picks for 2024]( Large outflows may signal decent future returns for several Morningstar Categories. Tony Thorn [How the Largest Stock Funds Performed In 2023]( [How the Largest Stock Funds Performed In 2023]( Invesco QQQ leads the pack with its big tech exposure. Kumudini Devalla Chart of the Week [2024 Market Outlook: What a ‘Return to Normal’ Means for Stocks]( [2024 Market Outlook: What a ‘Return to Normal’ Means for Stocks]( 2024 is lining up to be the first year after the pandemic when we are finally past all the disruptions and dislocations. David Sekera, CFA [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [3 Stories That Moved the Markets in 2023]( And what impact these stories may have on stocks in 2024. David Sekera, Susan Dziubinski [Morningstar’s Top Stories of 2023]( A look back at what you read in 2023, along with some of our favorites. Adley Bowden [Want to Lose Your Money? Listen to Millionaires.]( Along with anybody else who attempts to forecast the investment future. John Rekenthaler [4 New Rules for Investors In 2024]( Bonds are really back, cash isn’t king, and two more portfolio strategies to consider. Sarah Hansen [The Risks Ahead for 2024 and How Investors Can Manage Them]( Today’s risks feel elevated, so what really matters? Marta Norton, Ryan Murphy Future-Proof Your Strategy With Morningstar Investor Build a portfolio that's durable, no matter what the market throws your way. Subscribe to Morningstar Investor and get unlimited access to our powerful ratings and performance data, unbiased analysis on thousands of stocks, funds, and ETFs, and portfolio management tools that give you a deep understanding of your investments so you know when to make changes to keep your strategy strong. [Start your free trial today](. 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