Undervalued by 40%, This Stock Is a Buy for High-Risk Investors

Plus: 10 Top Stock Picks of the Best Managers, Magnificent Seven vs. the ‘Granolas’, and Key Takeaways from Warren Buffet's Shareholder Letter.? [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=52120&elqTrackId=daf4b3cf6bca45b887c1226cc4dae659&elq=a8963107a658445f8ddeb18126c2ae3c&elqaid=52120&elqat=1&elqCampaignId=26225) [Stock Strategist] Stock Strategist February 26, 2024 Good Morning! Here's the rundown of what's happening in the stock market. These days it seems like only one stock matters: Nvidia. The chip designer’s stock is now up over 60% so far this year with another 8% coming just this past week. Nvidia’s latest leg higher on earnings prompted Brian Colello to raise his fair value estimate of [Nvidia stock by 52%](. Can Nvidia’s rally continue? Sarah Hansen [takes a look under the hood]( at Nvidia’s explosive growth and what that could mean for the stock going forward. While the focus among U.S. investors has been on Nvidia and the rest of the Magnificent Seven, there’s a similar story brewing in Europe. But there are some significant differences in the kinds of stocks at play, and notably, they’re generally cheaper. They’re called the “Granolas.” [Here’s our story](. Economic Releases Scheduled for the Coming Week - Monday, Feb. 26 - Jan. [New Home Sales]( (seasonally adjusted annual rate): 690K vs. 664K in Dec. - Tuesday, Feb. 27 - Jan. [Durable Orders]( (month to month): -4.80% vs. -0.01% in Dec. - Feb. [Consumer Confidence Survey]( 112.5K vs. 114.8K in Jan. - Wednesday, Feb. 28 - Q4 [GDP]( (seasonally adjusted annual rate): 2.8% vs. 3.3% in Q3 - Thursday, Feb. 29 - [Initial Unemployment Insurance Claims]( report for the week ended Feb. 24: 201K vs. 201K for the week ended Feb. 17 - Jan. [Personal Income and Outlays]( report - Personal Income (month to month): 0.4% vs. 0.3% in Dec. - Personal Consumption Expenditure (month to month): N/A vs. 0.7% in Dec. - PCE Deflator (year over year): 2.4% vs. 2.6% in Dec. - Core PCE Deflator (year over year): 2.8% vs. 2.9% in Dec. - Feb. [Chicago PMI]( 47.2 vs. 46.0 in Jan. - Friday, Mar. 1 - Jan. [Construction Spending]( (month to month): 0.3% vs. 0.9% in Dec. - Feb. [ISM Manufacturing]( 49.5 vs. 49.1 in Jan. All consensus estimates are sourced from FactSet. Investor Relations Weekly Calendar: Highlighted Corporate Earnings and More - Tuesday, Feb. 27 Corporate Earnings: Macy’s [M]( Lowe’s [LOW]( - Wednesday, Feb. 28 Corporate Earnings: Paramount [PARA]( Salesforce [CRM]( - Thursday, Feb. 29 Corporate Earnings: Zscaler [ZS]( For The Trading Week Ended February 23: - The Morningstar US Market Index rose 1.47%. - The best-performing sectors were consumer defensive, up 2.00%, and industrials, up 1.78%. - The worst-performing sector was energy, up 0.50%. - Yields on 10-year US Treasury notes fell to 4.25% from 4.30%. - West Texas Intermediate crude prices fell 3.90% to $76.54 per barrel. - Of the 704 US-listed companies covered by Morningstar, 469, or 67%, were up, one was unchanged, and 234, or 33%, were down. Which Stocks Are Up? Block [SQ]( Tandem Diabetes Care [TNDM]( LivaNova [LIVN]( Hyatt Hotels [H]( and Hanesbrands [HBI](. Which Stocks Are Down? Sunrun [RUN]( Plug Power [PLUG]( Palo Alto Networks [PANW]( SolarEdge Technologies [SEDG]( and Cushman & Wakefield [CWK](. And Don't Miss: - [Magnificent Seven vs. the ‘Granolas’: How Does Europe’s Version Stack Up?]( - [5 Ways Nvidia Is Living Up to the AI Hype]( - [10 Top Stock Picks of the Best Managers]( - [The 10 Best Dividend Stocks]( Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [Undervalued by 40%, This Stock Is a Buy for High-Risk Investors]( [Undervalued by 40%, This Stock Is a Buy for High-Risk Investors]( An unloved stock for contrarians with patience and an appetite for risk. Matthew Dolgin [See Stock]( Share: [facebook]( [twitter]( [linkedin]( [10 Top Stock Picks of the Best Managers]( [10 Top Stock Picks of the Best Managers]( Managers of highly rated funds own these names, but are these stocks to buy today? Susan Dziubinski [Magnificent Seven vs. the ‘Granolas’: How Does Europe’s Version Stack Up?]( [Magnificent Seven vs. the ‘Granolas’: How Does Europe’s Version Stack Up?]( ‘Granolas’ stocks are profitable, diversified, cheap—and posting big returns. Jocelyn Jovène [5 Ways Nvidia Is Living Up to the AI Hype]( [5 Ways Nvidia Is Living Up to the AI Hype]( The chipmaker’s stock price is already up 60% this year. Can it keep climbing? Sarah Hansen, Lauren Solberg [Warren Buffett on Charlie Munger, Realistic Investment Expectations, and the Stocks He Won’t Sell]( [Warren Buffett on Charlie Munger, Realistic Investment Expectations, and the Stocks He Won’t Sell]( Key takeaways from Warren Buffett’s 2023 letter to Berkshire Hathaway’s shareholders. Susan Dziubinski [What Does Walmart’s Stock Split Mean for Investors?]( [What Does Walmart’s Stock Split Mean for Investors?]( Shares of the retailer will carry a fair value estimate of $49 after its 3-for-1 split. Sarah Hansen [The Best Technology Stocks to Buy ]( [The Best Technology Stocks to Buy]( These seven undervalued stocks offer attractive prices in a predominantly overvalued sector. Sbidag Demerjian [After Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Albemarle Stock a Buy, a Sell, or Fairly Valued?]( With falling lithium prices and a focus on free cash flow, here’s what we think of Albemarle’s stock. Seth Goldstein [After Earnings, Is Applied Materials Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Applied Materials Stock a Buy, a Sell, or Fairly Valued?]( With top-end sales and overachieving earnings, here’s what we think of Applied Materials’ stock. William Kerwin [After Earnings, Is Coca-Cola’s Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Coca-Cola’s Stock a Buy, a Sell, or Fairly Valued?]( With an impressive increase in organic revenue growth, here’s what we think of Coca-Cola’s stock. Dan Su [After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Arista Stock a Buy, a Sell, or Fairly Valued?]( With strong results in line with expectations, here’s what we think of Arista’s stock. William Kerwin [After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?]( With Ford’s fresh pricing outlook and special dividend, here’s what we think of its stock. David Whiston [After Earnings, Is Uber Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Uber Stock a Buy, a Sell, or Fairly Valued?]( With better-than-expected fourth-quarter results and a $7 billion share buyback plan, here’s what we think of Uber’s stock. Ali Mogharabi [10 Best Growth Stocks to Buy for the Long Term]( [10 Best Growth Stocks to Buy for the Long Term]( The stocks of these high-quality growth companies look undervalued today. Margaret Giles [Software Outlook: The Industry Should Remain a Robust Area for Growth]( [Software Outlook: The Industry Should Remain a Robust Area for Growth]( Key tailwinds for the industry include artificial intelligence and increased digital transformation. Eric Compton, Verushka Shetty [A Top Contrarian Investment Idea for 2024]( [A Top Contrarian Investment Idea for 2024]( The time may be right for these out-of-favor stocks to finally reverse course. Dan Lefkovitz, Susan Dziubinski [Investing Opportunities for Oil and Gas E&P Stocks During the Energy Transition]( [Investing Opportunities for Oil and Gas E&P Stocks During the Energy Transition]( Cost advantage is key for E&P firms to achieve a moat. Stephen Ellis [We Just Downgraded These 2 Stocks. Is It Time to Sell?]( [We Just Downgraded These 2 Stocks. Is It Time to Sell?]( We’ve lowered the moat ratings on these companies to none from narrow. Susan Dziubinski [The Best Bank Stocks to Buy ]( [The Best Bank Stocks to Buy]( There’s opportunity to be found among the undervalued stocks of high-quality banks. Tori Brovet [The Effect of Government Shutdowns on Equities]( [The Effect of Government Shutdowns on Equities]( How to address the risks of portfolio volatility amid the ongoing debt battle. Larry Swedroe [The 10 Best Dividend Stocks]( [The 10 Best Dividend Stocks]( These undervalued stocks with reliable dividends are worth considering. Susan Dziubinski 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](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. 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