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I caught up with Shark Tank investor Kevin O'Leary, an active crypto investor and market veteran, to get his take on the digital asset sector and recent regulatory action. Since November, he's moved his holdings to Canada, where he uses WonderFi, a name he's backed as an investor. They told regulators 'go get them,' and all of a sudden we have a mountain of enforcement action." The SEC said it's "neutral" about the technology at hand, yet "anything but neutral when it comes to investor protection." I bet if you looked at who's managing these companies 36 months from now, all the current guys are gone."
But dividend-paying stocks provide stable and consistent cash flow, even during downturns. Morningstar analysts shared 10 top undervalued stocks to buy for long-term cash flow. 10 cheap dividend-paying stocks to buyWhen faced with a looming economic downturn, one traditional strategy for investors to use to hedge recessionary risks is to buy dividend-paying stocks. "Price risk remains elevated, as does the risk that companies may not be able to maintain current dividends due to economic strain." Below is the full list of top dividend-paying stocks identified by Shetty and Compton, along with each company's ticker and market capitalization.
Block shares extend losses as Hindenburg report weighs
  + stars: | 2023-03-24 | by ( ) www.reuters.com   time to read: +2 min
[1/2] The logo of Cash App is seen at the main hall during the Bitcoin Conference 2022 in Miami Beach, Florida, U.S. April 6, 2022. REUTERS/Marco Bello/File PhotoMarch 24 (Reuters) - Shares of Twitter co-founder Jack Dorsey's Block Inc (SQ.N) fell 4% in premarket trading on Friday, a day after the payments firm's Cash App business became the latest target of U.S. short seller Hindenburg Research. In a report, Hindenburg has alleged that Block overstated its user numbers and understated its customer acquisition costs. Block shares closed 15% lower on Thursday, giving up all the gains made so far this year. The report cited a non-profit organization to say that Cash App was also "by far" the top app used in reported U.S. sex trafficking.
Asian markets tumble as SVB fears rattle banking sector
  + stars: | 2023-03-14 | by ( Laura He | ) edition.cnn.com   time to read: +3 min
Investors are now on edge over whether the demise of SVB could spark a broader banking sector meltdown. On Monday, US stocks were mixed, with banking shares taking a hit. In Hong Kong, shares in Bank of China (Hong Kong) and Hang Seng Bank fell 3.7% and 1.3% respectively. Sumitomo Mitsui Financial Group and Mizuho Financial Group both dropped more than 7%. In Seoul, KB Financial Group and Shinhan Financial Group fell 3.6% and 2.5% respectively.
Here are Morningstar's top 10 stock picks that are trading as much as 35% below fair market value. 2023 has barely begun, but the stock market is already off to the races. But the ongoing market rally has revealed investors' newfound optimism around peaking inflation, China's reopening, and hopes for a dovish Federal Reserve pivot sometime this year. Still, the question remains: is this finally the bull market rally investors have been waiting for, or is it doomed to eventually collapse? The full list of 10 stocks is below, along with each firm's ticker, industry, market capitalization, and current price-to-fair value ratio.
PARIS, Jan 12 (Reuters) - Shares in Ubisoft (UBIP.PA) fell 20% on Thursday after the French video game maker warned on revenue and postponed the release of its game "Skull and Bones", prompting analysts to cut their estimates and price targets. Late on Wednesday, Ubisoft said that it was increasing its writedown estimate to 500 million euros ($538 million) from 400 million and cutting its full-year revenue target after ending 2022 with weaker-than-expected sales. Several analysts noted that another negative factor was a shift in the video game industry towards mega-brands and away from small and mid-tier games. They reiterated their "market perform" rating on Ubisoft and cut their price target to 22 euros from 34 euros. Reporting by Dominique Vidalon, Pitr Lipinski; editing by Benoit Van Overstraeten and Jason NeelyOur Standards: The Thomson Reuters Trust Principles.
Right now the cheapest stocks are in the communication services sector, where they are currently trading 43% below Morningstar's fair value estimates. Healthcare and real estate stocks also seem undervalued, trading 11% and 25%, respectively, below fair price estimates. Within the sector software stocks are trading at a 23% discount, semiconductor stocks are 12% undervalued, and hardware stocks are 15% undervalued, according to Morningstar sector director Brian Colello. On the other hand, consumer defensives and industrials seem to be starting 2023 off trading around fair value, while utilities stocks currently look about 5% overvalued. These stocks are listed below, along with each firm's ticker, market capitalization, sector, and price over fair value estimate.
Netflix will be next on Microsoft’s shopping list
  + stars: | 2022-12-20 | by ( Jennifer Saba | ) www.reuters.com   time to read: +3 min
Look for him to add Netflix (NFLX.O) to the list in 2023. Since his 2014 promotion into the technology titan’s corner office, Nadella has embarked on a pricey shopping spree. Later, Microsoft bought LinkedIn for $26 billion and the speech recognition and artificial intelligence software developer Nuance for $20 billion. Even if Nadella loses out on the video-game company for competition reasons, however, owning Netflix would make strategic sense and probably be an easier sell in Washington and Brussels. With a market value 13 times that of Netflix, as of early December, $1.8 trillion Microsoft can afford Netflix.
HONG KONG, Dec 1 (Reuters Breakingviews) - Covid-19 lockdowns and protests across China have highlighted the risks of the mutual dependence between Taiwan's Foxconn and its top customer Apple (AAPL.O). It makes 70% of the world’s iPhones, according to Fubon Research. Meanwhile Apple’s huge investments into Foxconn have paid off: the U.S. company is the most profitable smartphone maker by far. Foxconn has been scrambling to contain the fallout, offering bonuses to temporary workers and shifting production to other facilities. At the time, Foxconn said it was bringing the situation under control and was coordinating with other plants to increase production.
Today we're going over what the ongoing protests in China mean for markets and investors. While the protests in China have been largely peaceful, some protesters have been met with violence from the authorities. Anti-government protests have erupted from Shanghai to Beijing as citizens rise up in opposition of China's zero-COVID policies. "Markets don't like bad news, and protests are bad news," Laffer told me on a phone call yesterday. China protests over lockdown measures could mean inflation gets stuck at 4%, according to Mohamed El-Erian.
From the Fed's aggressive rate hikes to Russia's war in Ukraine, investors have reasons to worry. These 10 stocks are a screaming buy during volatile periods, according to Morningstar. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Morningstar analysts say invest in companies that have grabbed significant market share like Alphabet (GOOGL) or Wells Fargo (WFG). Despite market headwinds and volatility, Morningstar lists "high-conviction" purchases for companies that money managers "have made meaningful additions to their portfolios."
Contrary to intutition, bear market rallies may make it tougher for investors to do their jobs. Morningstar shared 14 stocks that are still cheap, despite beating the market. Then, they whittled that list down to the stocks that Morningstar analysts considered undervalued. Finally, Morningstar analysts highlighted AstraZeneca (AZN), noting its strong pipeline and its development of drugs that carry high pricing power. The full list of Morningstar's 14 undervalued bear market stars is below, along with each firm's ticker, sector, bear market return, and price discount.
Sale-leasebacks allow retailers to raise capital without shedding stores by selling the underlying real estate and turning them from landlords into tenants. They also point out that companies often spend the money on share buybacks and dividends rather than investing in their business. Spokespeople for Kohl's, Macellum and Ancora declined to comment. It is not clear how many of Kohl's 1,100 stores would have been involved in any deal. Reuters GraphicsRENT EXPENSESIn a letter to shareholders in March defending its strategy against criticism from hedge fund Macellum Capital Management LLC, Kohl's said that a "large" sale-leaseback would "negatively impact margins by adding unnecessary rent expenses in perpetuity and risk Kohl's investment-grade rating".
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With many stocks in a bear market, equities could be undervalued by 15%, according to Morningstar's chief U.S. strategist. Dave Sekera told CNBC last week that markets are overestimating the impact of inflation on the U.S. economy, leaving many stocks below their fair value. The S & P 500 rallied 5.9% last week for its best week since June , although stocks fell slightly Monday. It gives Zimmer Biomet 51.4% potential upside, Amazon upside of 48%, Salesforce 52% upside, ServiceNow upside of 57%. Morningstar analysts also believe 3M is a "cheap stock" trading at $133 and expect shares to rise by 37.6% to $183.
The firm shared its top 33 most undervalued stock picks going into the fourth quarter of 2022. But that doesn't mean that there's no gains to be made, said Dave Sekera, the chief US market strategist at Morningstar. "On a longer historical time frame, there have only been a few other instances when our price versus fair value metric had dropped to similar levels." On the other hand, the defensive sectors are trading relatively close to Morningstar's fair value estimates, while utilities stocks seem to skew rich versus their fair values. In note from October 4, Morningstar analysts listed their top 33 most undervalued stocks heading into the fourth quarter of the year.
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