/d10o6nnig0wrdw.cloudfront.net/10-07-2024/t_b5d59e9bb2e6422e8446489e7e449794_name_file_960x540_1600_v4_.jpg)
As we move into the fourth quarter of 2024, investors are looking for opportunities in undervalued stocks. A recent analysis by Morningstar, authored by David Sekera, CFA, and Susan Dziubinski, identifies five key undervalued stocks to consider during this period. The highlighted stocks include Alphabet Inc (GOOGL), Verizon Communications Inc, and Nike Inc, all of which are seen as having significant upside potential. [96ca1459]
The analysis notes that the current market environment is influenced by expectations of a 25-basis-point cut in the federal-funds rate over the next two meetings. This monetary policy shift is anticipated to provide support for stock prices, particularly as inflation numbers and geopolitical tensions remain critical factors for market stability. [96ca1459]
In terms of valuation, the report indicates that growth stocks are currently about 13% overvalued, while value stocks are approximately 3% undervalued. Notably, the energy sector is highlighted as being undervalued with a 9% discount. Specific stocks rated by Morningstar include Dow, which is rated 4 stars with a 23% discount; FMC, rated 5 stars with a 42% discount; Sun Communities, rated 4 stars with a 25% discount; CNH Industrial, rated 4 stars with a 25% discount; and Estee Lauder, rated 5 stars with a 45% discount. [96ca1459]
As earnings season approaches, with major banks like J.P. Morgan and Wells Fargo set to report on October 11, 2024, investors are advised to keep a close eye on these developments as they could impact market sentiment and stock valuations. [96ca1459]
In addition to these insights, a previous article from InvestorPlace also discussed various undervalued and growth stock picks for April 2024, including Home Depot (HD), Merck & Co (MRK), and Amgen (AMGN) as undervalued options, alongside growth stocks like Amazon and Shift4 Payments. This broader perspective on stock selection highlights the ongoing opportunities in both undervalued and growth segments of the market. [06921b22][942e434e][83bfd745]