5 Undervalued Stocks That Crushed Earnings

Plus: Cheap stocks that just raised their dividend, should you pay attention to economists, and Lumen’s wild ride. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=56852&elqTrackId=7534462e2be74879b108ed00d0c3513a&elq=bd72b57a645b4428874fc6a8d6186cd7&elqaid=56852&elqat=1&elqCampaignId=28982&elqak=8AF585D66898344EC55A509BC4E32D03D3141E9F4ECF03E5F6F7EFDAD5390E555BDA) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [5 Undervalued Stocks That Crushed Earnings]( - [4 Undervalued Stocks That Just Raised Dividends]( - [Where to Find Value in Japanese Stocks]( - [July CPI Report Sets the Stage for Fed Rate Cut in September]( - [How Closely Should Investors Pay Attention to Economists?]( - [10 Funds That Are Thriving During the Rotation Out of Tech Stocks]( - [Lumen Stock Has Been on a Wild Ride. Is It a Buy?]( Investors seem comfortable with unbuckling their seatbelts after the early-August market turbulence. Stocks and bonds were already trading on a much more even keel before the July Consumer Price Index report released Wednesday. We checked in with Morningstar’s chief US economist Preston Caldwell on what the CPI report could mean for the scope of [the Federal Reserve’s interest rate cuts]( in September and beyond. Economic trends like inflation clearly matter a heck of a lot in the markets, hence all the attention investors pay to economists' forecasts. As is John Rekenthaler’s wont, he leaves no stone unturned when questioning investor behavior. He asks “[How Closely Should Investors Pay Attention to Economists?]( and turns to the data for the answer. It’s a must read. While the dust has settled in the markets, as we noted last week in our look at the [dozens of newly undervalued stocks]( in the United States, opportunities have been opened by the recent selloff. That’s true in Japan as well, and [Leslie Norton checks in with a Japan specialist on where to invest now](. Meanwhile, some value stock fund managers in the US are making hay while the sun shines after lagging the growth-stock-fueled rally. Gabe Alpert rounds up ten funds that are [putting up solid returns]( amid the rotation out of tech stocks. This past week, we also looked back at earnings season and screened for companies that are both undervalued and knocked it out of the park with their results. [Bella Albrecht has five](. We also screened for cheap stocks that have come out with new increases in their dividends. This month, we found [four names that fit the bill](. Lastly, we examined a stock that has been on a wild ride in recent weeks. Earlier this summer, Lumen Technologies was seen as possibly heading to bankruptcy. Now the stock has quintupled and joined the ranks of artificial intelligence plays. [Should you buy into it?]( That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [5 Undervalued Stocks That Crushed Earnings]( [5 Undervalued Stocks That Crushed Earnings]( Names like Sony and GSK are still cheap despite impressive earnings beats for Q2 2024. Bella Albrecht [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [4 Undervalued Stocks That Just Raised Dividends]( [4 Undervalued Stocks That Just Raised Dividends]( Citigroup and Kenvue are among cheap stocks lifting their dividend payouts. Tom Lauricella [Where to Find Value in Japanese Stocks]( [Where to Find Value in Japanese Stocks]( Matthews Japan manager explains why corporate profit growth and valuation remain compelling, despite the recent collapse. Leslie Norton [July CPI Report Sets the Stage for Fed Rate Cut in September]( [July CPI Report Sets the Stage for Fed Rate Cut in September]( Prices for cars and clothing fell, while shelter inflation rose slightly. Sarah Hansen [Can Economists Help Investors Avoid Recessions?]( [Can Economists Help Investors Avoid Recessions?]( How often they accurately predict a recession, and how often they’re late to the party. John Rekenthaler [10 Funds That Are Thriving During the Rotation Out of Tech Stocks]( [10 Funds That Are Thriving During the Rotation Out of Tech Stocks]( Value stock funds, dividend funds, and low-volatility strategies are getting their day in the sun. Gabe Alpert [Lumen Stock Has Been on a Wild Ride. Is It a Buy?]( [Lumen Stock Has Been on a Wild Ride. Is It a Buy?]( Bankruptcy fears have faded thanks to deals with Microsoft and others. Tom Lauricella [It’s Not Just Warren Buffett; We Also Think Ulta Beauty Is a Buy]( [It’s Not Just Warren Buffett; We Also Think Ulta Beauty Is a Buy]( While Ulta’s stock has taken a hit amid competitive pressures, here’s why Morningstar sees it as a strong investment opportunity. David Swartz [After Earnings, Is Coinbase Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Coinbase Stock a Buy, a Sell, or Fairly Valued?]( With retail trading still volatile and strong growth in subscriptions and services, here’s what we think of Coinbase stock. Michael Miller [After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Palantir Stock a Buy, a Sell, or Fairly Valued?]( With robust growth in US commercial and government sectors and success with AIP driving customer conversions, here’s what we think of Palantir stock. Malik Ahmed Khan [After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Eli Lilly Stock a Buy, a Sell, or Fairly Valued?]( While we are bullish on Lilly’s sales prospects, the market may be overly optimistic. Damien Conover [Why We Think Disney Stock Is a Buy]( [Why We Think Disney Stock Is a Buy]( With disappointing growth in Experiences and the streaming business getting stronger, here’s what we think of Disney stock. Matthew Dolgin [2 Tasty Restaurant Stocks Trading at a Discount]( [2 Tasty Restaurant Stocks Trading at a Discount]( Restaurants have struggled, but these undervalued stocks are well-positioned for a tough environment. Oratile Matome [10 Top Stock Picks of the Best Fund Managers]( [10 Top Stock Picks of the Best Fund Managers]( Managers of highly rated funds own these names, but are these stocks to buy today? Susan Dziubinski [Daniel Peris: The Case for Dividend Investing]( [Daniel Peris: The Case for Dividend Investing]( An investment historian and portfolio manager discusses the dividend debate and what the future may hold. Christine Benz, Dan Lefkovitz [The 60/40 Portfolio: Bonds Are So Back]( [The 60/40 Portfolio: Bonds Are So Back]( High-quality bonds show their mettle during recent market volatility. Jason Kephart [What’s Behind Starbucks’ Best Trading Day Ever]( [What’s Behind Starbucks’ Best Trading Day Ever]( How a simple change reversed negative market sentiment. Danny Noonan [Bonds Reclaim Their Defensive Status]( [Bonds Reclaim Their Defensive Status]( The recent stock slide proved the diversification value of bonds. Danny Noonan [These Major Companies Aren’t Worried About Election Outcomes]( [These Major Companies Aren’t Worried About Election Outcomes]( While consumers are becoming more discerning about the future, many companies are doing the exact opposite. Danny Noonan Chart of the Week [Why Investors Missed Out on 15% of Total Fund Returns]( [Why Investors Missed Out on 15% of Total Fund Returns]( And six ways that you can try to close the gap. Jeffrey Ptak [Read More]( Share: [facebook]( [twitter]( [linkedin]( Recent Earnings [Kellanova: Short Independent History to Wrap in H1 2025 as Mars Looks to Speed Its Growth]( [Starbucks: Luring Brian Niccol Should Stimulate Sagging Coffee Chain]( [Home Depot: Consumer Apprehension Crimps Sales, but Long-Term Algorithm Intact]( [Cisco: Growth Guidance for Fiscal 2025 Is Positive]( [Applied Materials: We Like the Firm’s Growth Opportunity]( [Alibaba: Higher Sales Growth Offset by Increasing Investments]( [Walmart: Attractive Prices and Growing Digital Engagement Propel Market Share Gains]( [Recent Company Earnings]( Discover actionable opportunities today with our earnings coverage and analyst insights. Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or plans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=56852) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602