7 Top-Performing, Cheap Stocks

Plus: Best- and worst-performing ETFs, undervalued stocks that raised dividends, is the stock market overvalued? [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=52498&elqTrackId=c7b98d48e8b444458654fe1da70ebb97&elq=7295e422ee104c3691380cde6a9679c7&elqaid=52498&elqat=1&elqCampaignId=26460) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [7 Top-Performing, Cheap Stocks to Buy]( - [13 Undervalued Stocks That Just Raised Dividends]( - [The Optimists Were Right About FANG Stocks]( - [Is There Really a Historic Level of Cash on the Stock Market’s Sidelines?]( - [Is the Stock Market Overvalued?]( - [Why the February Jobs Report Shows Solid—But Not ‘Hot’—Hiring Gains]( - [CPI Report Forecasts Show Inflation Rising Faster Thanks to Gas Price Spike]( - [Top- and Bottom-Performing Stock ETFs]( It was yet another winning week for the stock market, with the Morningstar US Market Index now up some 28% from a year ago. Popping into our Wayback Machine (the original cartoon one, not the website), it would be hard to find many folks who predicted these kinds of gains, especially for tech stocks. It’s worth noting that this rally has proven many skeptics wrong. [John Rekenthaler looks]( at the track record of the companies formally known as the FANG stocks and shows just how wrong the naysayers turned out to be, and why. (Speaking of naysayers, here’s a great take on a top-performing tech stock fund manager who, get this, [doesn’t own Nvidia]( This of course raises a question: Is the stock market overvalued? Sarah Hansen digs into [what investors should know]( about the different ways of measuring valuations, and from there, what they say about whether the market has room to run. In the debate over the outlook for the bull market, some optimistic pundits point to the record amounts of cash on the sidelines, known as “dry powder” in Wall Street lingo. But is there really that much cash waiting to be put to work in stocks? We [take a closer look]( at the question through Morningstar’s fund flows database. Adding to the comfort in the outlook for the stocks has been the economic backdrop. Yes, inflation isn’t quite down to where the Federal Reserve wants it to be, but the economy is looking much healthier than most expected. Case in point: the February jobs report. [Here’s our take]( on what the jobs report should mean for investors. Speaking of inflation, here’s what you need to know about the [February Consumer Price Index]( report, due Tuesday morning. We’ve also got a few stock and fund screens to share. First there’s our monthly update on which undervalued stocks raised their dividends. There are 13 names on our list, [which includes DuPont](. Next, we screened the best-performing stocks over the past year for companies that Morningstar analysts still think are cheap. We’ve [got seven for you]( among them an under-the-radar company called Alphabet (joking). Lastly, have a list of the month’s best- and worst-performing ETFs. Interestingly, the [best name in February was an IPO strategy](. 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 Top-Performing Stocks to Buy Now]( [7 Top-Performing Stocks to Buy Now]( Alphabet, Wayfair, and Lyft are among the stocks that are posting big gains but remain undervalued. Diana Anghel [Get Picks]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Is the Stock Market Expensive Right Now?]( [Is the Stock Market Expensive Right Now?]( Everything investors need to know about frothy stock valuations, and why they may not be so bad. Sarah Hansen [13 Undervalued Stocks That Just Raised Dividends]( [13 Undervalued Stocks That Just Raised Dividends]( DuPont, NextEra Energy, and Quest Diagnostics are among the cheap stocks with big dividend increases in February. Tom Lauricella [Why the February Jobs Report Shows Solid—But Not ‘Hot’—Hiring Gains]( [Why the February Jobs Report Shows Solid—But Not ‘Hot’—Hiring Gains]( Fed interest rate cuts still expected for June. Tom Lauricella [February CPI Report Forecasts Show Inflation Rising Faster Thanks to Gas Price Spike]( [February CPI Report Forecasts Show Inflation Rising Faster Thanks to Gas Price Spike]( The last mile in the inflation fight is proving bumpy. Sarah Hansen [What’s Happening In the Markets This Week]( [What’s Happening In the Markets This Week]( CPI, PPI, and Oracle earnings coming up. Bella Albrecht [You Might Be Invested in the Most Expensive Parts of the Corporate-Bond Market]( [You Might Be Invested in the Most Expensive Parts of the Corporate-Bond Market]( What to know about exposure to BBB rated bonds. Eric Jacobson [This Bond ETF Promises T-Bill Returns Without Taxable Income]( [This Bond ETF Promises T-Bill Returns Without Taxable Income]( BOXX may be a viable alternative to money market funds and other cash vehicles. Lan Anh Tran, Bryan Armour [Is There Really a Historic Level of Cash on the Stock Market’s Sidelines?]( [Is There Really a Historic Level of Cash on the Stock Market’s Sidelines?]( Investors may have less dry powder than it appears. Sylvester Flood [Albemarle Stock Plunges 18% on Big Share Issuance. Is It a Buy?]( [Albemarle Stock Plunges 18% on Big Share Issuance. Is It a Buy?]( The lithium producer surprised investors by announcing a $2 billion offering. Tom Lauricella [After Earnings, Is The RealReal Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is The RealReal Stock a Buy, a Sell, or Fairly Valued?]( With a debt overhang and a big jump in its stock price, here’s what we think of The RealReal. Sean Dunlop [After Earnings, Is Baidu Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Baidu Stock a Buy, a Sell, or Fairly Valued?]( With the long-term potential of AI guiding forecasts, here’s what we think of Baidu stock. Kai Wang [After Earnings, Is Salesforce Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Salesforce Stock a Buy, a Sell, or Fairly Valued?]( With continued positive performance and a new dividend, here’s what we think of Salesforce stock. Dan Romanoff [After Earnings, Is Zscaler Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Zscaler Stock a Buy, a Sell, or Fairly Valued?]( With continued top-line growth, here’s what we think of Zscaler stock. Malik Ahmed Khan [3 Stocks to Sell and 3 Stocks to Buy in March]( [3 Stocks to Sell and 3 Stocks to Buy in March]( Plus, our updated forecasts for interest rates and inflation and our March stock market outlook. David Sekera, Susan Dziubinski [Gold-Rated Funds With Women Managers]( [Gold-Rated Funds With Women Managers]( These funds have delivered great returns and income. Russel Kinnel [The Chip Shortage Is Mostly Over, but the Auto Industry Hasn’t Fully Recovered]( [The Chip Shortage Is Mostly Over, but the Auto Industry Hasn’t Fully Recovered]( GM stock remains cheap, but we no longer consider it a favorite. David Whiston [3 of the Best Contrarian Investments Today]( [3 of the Best Contrarian Investments Today]( These sectors look unloved and undervalued. David Sekera, Susan Dziubinski [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 [What’s Surprising Some Retirees About Their Social Security Benefits?]( [What’s Surprising Some Retirees About Their Social Security Benefits?]( Also, Salesforce’s dividend plans and Snowflake’s outlook following its leadership change. Ivanna Hampton, Russel Kinnel, Mark Miller [February U.S. Jobs Report: 275,000 Rise in Payrolls, Above Expectations]( [February U.S. Jobs Report: 275,000 Rise in Payrolls, Above Expectations]( January’s big job gain revised down as unemployment rate increases to 3.9%. Tom Lauricella [Increased Risk-Taking Reduces Pimco Total Return’s Rating]( [Increased Risk-Taking Reduces Pimco Total Return’s Rating]( PTTRX’s new lead manager is more willing to bet against the bond fund’s benchmark. Ken Noguchi [How Fidelity Blue Chip Growth Has Bounced Back]( [How Fidelity Blue Chip Growth Has Bounced Back]( Investments in semiconductors and consumer goods have helped the fund succeed over the long term. Robby Greengold [9 Things to Know About the SEC’s New Climate Rule and How It Affects You]( [9 Things to Know About the SEC’s New Climate Rule and How It Affects You]( For investors, climate risk becomes an important part of the traditional narrative. Charity Blue, Leslie Norton [Proxy Season 2024: How to Act Like an Owner]( [Proxy Season 2024: How to Act Like an Owner]( The basics of proxy voting and Morningstar’s analysis of the themes and companies that will dominate this year. Leslie Norton Chart of the Week [The Optimists Were Right About FANG Stocks]( [The Optimists Were Right About FANG Stocks]( And the growth-stock skeptics were very, very wrong. John Rekenthaler [See More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Broadcom: AI Revenue Is Accelerating]( [Marvell: AI Helping to Offset Spending Corrections]( [MongoDB: Overall Growth Is Slowing, but Atlas’ Growth Still Solid]( [GE: Vernova Will Continue on Stronger Path Independently; No Surprises In Targets]( [Target: Margins Show Encouraging Improvement, but Sales Remain Weak]( [Macy’s: Raised Offer Should Be Considered]( [Costco: Continued Top-Line Growth Reinforces the Retailer’s Wide Moat]( [Nio: Revenue In Line, but Vehicle Margin Missed; Near-Term Pricing Pressure Remains]( 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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