From Morningstar: 2025-01-14 04:56:28

Morningstar’s Stock Strategist newsletter provides insights on company news, stock market trends, and analyst reports. This week, 16 stocks gained 4-star ratings, while 9 moved to 5-star territory. Notable 4-star stocks include Alibaba, AT&T, National Grid, Yum Brands, and Las Vegas Sands. Top 5-star stocks include Mondelēz, Lloyds Banking Group, Constellation Brands, Hershey, and Vodafone Group.

The Morningstar US Market Index fell 1.92% last week, leaving the US stock market moderately overvalued. Of 861 US-listed stocks, 38% are undervalued, 40% are fairly valued, and 22% are overvalued. 16 stocks are newly undervalued, and 3 are newly overvalued. Morningstar analysts assign fair value estimates and Uncertainty Ratings to determine Morningstar Ratings.

Metrics for 4-star stocks like Alibaba, AT&T, National Grid, Yum Brands, and Las Vegas Sands show price discounts to fair value estimates. Meanwhile, 5-star stocks like Mondelēz, Lloyds Banking Group, Constellation Brands, Hershey, and Vodafone Group also trade at significant discounts to their fair value estimates, with varying Uncertainty Ratings and economic moats. 1. A new study reveals that the Amazon rainforest is losing its ability to recover from disturbances like droughts and fires due to the increasing impact of deforestation and climate change. Scientists warn that urgent action is needed to protect this vital ecosystem.

2. The United Nations reports that global carbon dioxide emissions hit a record high in 2021, despite pledges to reduce emissions. The report highlights the urgent need for countries to step up their efforts to combat climate change and transition to renewable energy sources.

3. In economic news, the US economy added 678,000 jobs in February, surpassing expectations and signaling a strong recovery from the pandemic-induced downturn. The unemployment rate also dropped to 3.8%, the lowest since the start of the pandemic.

4. On the international front, tensions between Russia and Ukraine continue to escalate as Russia amasses troops near the Ukrainian border. The US and its allies have expressed concern over the situation and called for a peaceful resolution to the conflict.

5. In health news, a new study suggests that a third Covid-19 vaccine dose may provide strong protection against the Omicron variant. Researchers found that a booster shot significantly increases antibody levels and enhances immunity against the highly transmissible variant.



Read more at Morningstar: Newly Undervalued Global Stocks | Morningstar