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He said it's "always a stock picker's market," but that this is even more pertinent this year. Morningstar gives the company a five-star rating, and according to Sekera it has a healthy dividend yield and is trading at a 34% discount to Morningstar's fair value. Of the 23 analysts covering the stock, 11 give it a buy or overweight rating, while 12 have hold ratings. The average price target on the stock is $39.40, according to FactSet data, giving it potential upside of 13.2%. On GSK, Sekera noted that the London Stock Exchange-listed company is trading at a 27% discount.
Persons: David Sekera, Morningstar, Sekera, Kraft Heinz, it's Organizations: U.S . Federal, CNBC Pro, Kraft Heinz, Kraft, GSK, London Stock Exchange, Reuters Locations: United States
The electric vehicle industry is seeing cutthroat competition between investor favorite Tesla and several Chinese automakers like BYD . "While Tesla grabs all the headlines, we don't necessarily think that it's going to be the electric vehicle manufacturers that do the best. Morningstar gives stocks a rating of between one and five stars, with a top rating indicating that the shares are undervalued. We think lithium prices are probably bottoming out here," he told CNBC Pro on Feb. 2. Shares of the U.S. lithium company have had a bumpy ride over the past days.
Persons: Tesla, David Sekera, Volkswagen —, Sekera, it's, Albemarle Organizations: Morningstar, Ford Motor, Volkswagen, CNBC Pro, International Energy Agency, Reuters Locations: BorgWarner, Albemarle, U.S
This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Milestone crossedThe benchmark S&P 500 hit the 5,000 level for the first time on Thursday, but closed just under the milestone. Japan's zombie problemsDespite strong performance since the beginning of 2023, Japan's stock market faces several issues over zombie firms. [Pro] Bypassing the Magnificent 7Morningstar's chief markets strategist David Sekera highlighted that the Magnificent Seven stocks "are starting to run out of steam."
Persons: Dow, Sissie Hsiao, Bard, David Sekera Organizations: CNBC, Nasdaq, Google, Bard, Gemini, Bank of Japan
CNBC Daily Open: U.S. CEOs turn positive on the economy
  + stars: | 2024-02-09 | by ( Sumathi Bala | ) www.cnbc.com   time to read: +2 min
US President Joe Biden speaks about the economy and the deal between the United Auto Workers (UAW) Union and the big-three automakers, in Belvidere, Illinois, on November 9, 2023. This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Nikkei fresh highsJapan's Nikkei hit new highs on Friday, while most markets in the region were either fully or partially closed for Lunar New Year holidays. Biden pushes backU.S. President Joe Biden in a White House address said his "memory is fine," and disputed a special counsel's claims that he willfully retained classified material at his Delaware home.
Persons: Joe Biden, Dow, Sissie Hsiao, Bard, Biden, Donald Trump, David Sekera Organizations: United Auto Workers, UAW, Union, CNBC, Nikkei, Nasdaq, Google, Bard, Gemini, Bank of Japan, Nevada Republican, NBC Locations: Belvidere , Illinois, Delaware
"The Magnificent Seven stocks generally are starting to run out of steam at this point because their valuations are getting pretty full at this point of time," Morningstar's Chief Markets Strategist David Sekera told CNBC Pro on Feb. 2. However, Sekera thinks things are looking up for small-caps and value stocks — the latter of which he says are trading at an 11% discount relative to Morningstar's fair value and look like a "good area for investors to overweight in U.S. stocks right now." Tech stocks The chief strategist remains bullish on tech, albeit outside of the Magnificent Seven, and named Cognizant Technology Solutions and Snowflake as picks to play the theme. Value in energy The energy sector — one of the laggards of the stock market last year — is also on Sekera's radar. Morningstar gives stocks a rating of between one and five stars, with a top rating indicating that the shares are undervalued.
Persons: David Sekera, Morningstar, Sekera, Russell, , We're, doesn't, NiSource, Entergy Organizations: Big Tech, Apple, Meta, Microsoft, Nvidia, Tesla, CNBC Pro, Dow, Nasdaq, Tech, Technology Solutions, APA Corp, Morningstar, Exxon, APA, Entergy, WEC Energy Locations: Suriname, United States
Small-cap stocks are trading at the greatest discount relative to their larger counterparts. Instead, investors spent the year shifting from growth to value stocks in an attempt to seek a safe haven. He specified small-cap stocks, which are trading at the greatest discount relative to their larger counterparts. The Federal Reserve is then expected to ease its monetary policy, which would lead to a rebound in the stock market. The caveat is that many of these small-cap stocks also have a high uncertainty rating, which indicates how closely Morningstar thinks its forecast will match the company's outcome.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailU.S. could face a recession in the first half of 2023, Morningstar strategist saysDavid Sekera of Morningstar says it expects the average inflation rate to be at 2.9% next year.
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