Top-Performing Moat Stocks

Plus: The impact of Trump’s tariffs, New undervalued stocks, electricity grid plays. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=SmartInvestor&utm_content=None_59556&utm_id=30619&elqTrackId=6b2a71c17008494dbc84d9e471cdb8d1&elq=7d87d6144c144d80801de2352e7ea506&elqaid=59556&elqat=1&elqCampaignId=30619&elqak=8AF58F675F43087A05BF69218B3AE1455203E328C9C13C6159194D10BF54EDCE65EE) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this newsletter: - [10 Moat Stocks That Are Leading the Rally]( - [6 New 4-Star Stocks]( - [Trump’s Tariffs: A Wild Card for the Markets in 2025](’s Tariffs: A Wildcard for the Markets in 2025?utm_source=eloqua&utm_medium=email&utm_campaign=SmartInvestor&utm_content=None_59556&utm_id=30619&elqTrackId=a04adfd6f43747b8b7c4f8d7df65b37c&elq=7d87d6144c144d80801de2352e7ea506&elqaid=59556&elqat=1&elqCampaignId=30619&elqak=8AF5371CDED416FC0520CBEA013A73465161E328C9C13C6159194D10BF54EDCE65EE) - [18 Newly Overvalued Stocks for the Week]( - [3 Electricity Grid Plays for Your Portfolio]( Not surprisingly, it was a quiet week with the Thanksgiving holiday. But in the absence of anything significant to trip the markets up, the path of least resistance seems to be higher. That left the Morningstar US Market Index hitting yet another new record high, with the benchmark now posting gains of roughly 27% for 2024. This year’s rally has been led by high-quality companies, as can be seen from the performance of stocks that Morningstar analysts believe have strong competitive advantages, aka wide or narrow economic moats. Bella Albrecht dug into this year’s stats to highlight which moat stocks have been [leading the market higher](. It’s more than just Nvidia… While the outlook for stocks seems rosy, expectations have been shifting in the background regarding Federal Reserve policy. As we reported last week, solid economic growth and inflation data have the markets pricing in significantly [less Fed easing next year]( and Consumption Expenditures Price Index – [while coming in as expected]( – showed inflation stuck for now above the central bank’s 2% target. While it was quiet in the markets, it certainly wasn’t in Washington. President-elect Trump continued his cabinet appointments, but it was with a policy tweet that he perhaps got the most attention in the markets and corporate America by announcing his intention to slap 25% tariffs on goods from Canada and Mexico, our biggest trading partners. As Sarah Hansen reports, even before Trump’s tweet, tariffs were a hot topic on third-quarter earnings calls. [Check out our story]( on what this move could mean for corporate profits, inflation, and potentially the markets. One corner of the market that has been under pressure since the election has been [clean energy](. However, there is some overlap between those stocks and names poised to benefit from the growing need to improve this country’s power grid. Leslie Norton spoke with Calamos Investments portfolio manager Tony Tursich, who has [three stocks that could be winners]( thanks to demand. To close out the week, be sure to check out latest screens on [stocks that have fallen into undervalued territory]( as well as those you might want to now [add to your sell list](. Check out our [Markets page]( our latest coverage and live stock market updates, along with [our weekly calendar]( key upcoming data and events. [10 Moat Stocks That Are Leading the Rally]( [10 Moat Stocks That Are Leading the Rally]( Wide- and narrow-moat stocks are far outperforming no-moat names in 2024. Bella Albrecht [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [October PCE Report: PCE Inflation Index Up 2.3%, In Line With Expectations]( [October PCE Report: PCE Inflation Index Up 2.3%, In Line With Expectations]( The PCE Price Index increased 0.2% in October. Bella Albrecht [Trump’s Tariffs: A Wildcard for the Markets in 2025]( [Trump’s Tariffs: A Wildcard for the Markets in 2025]( Price hikes are possible; diverse supply chains are a must. Sarah Hansen [18 Newly Overvalued Stocks for the Week]( [18 Newly Overvalued Stocks for the Week]( S&P Global and CrowdStrike are among the stocks that are now expensive. Bella Albrecht [6 New 4-Star Stocks]( [6 New 4-Star Stocks]( Siemens and Target are among the stocks that fell into undervalued territory. Bella Albrecht [3 Electricity Grid Plays for Your Portfolio]( [3 Electricity Grid Plays for Your Portfolio]( These companies will benefit as spending increases to satisfy energy demand. Leslie Norton [Why We Love Vanguard FTSE Developed Markets ETF]( [Why We Love Vanguard FTSE Developed Markets ETF]( A low price and broad diversification make this ETF especially appealing. Zachary Evens [Why Our Best Investment Ideas for 2025 Are Outside the US]( [Why Our Best Investment Ideas for 2025 Are Outside the US]( Many large US company stocks appear to be expensive. Here are other investment opportunities heading into the new year. Philip Straehl, Michael Field [Warren Buffett Is Buying These 2 Stocks. You Probably Shouldn’t]( [Warren Buffett Is Buying These 2 Stocks. You Probably Shouldn’t]( Berkshire Hathaway recently bought shares of these companies, but we think these stocks are unattractive today. Susan Dziubinski [What’s Happening in the Markets This Week]( [What’s Happening in the Markets This Week]( Jobs report, Fed Beige Book, and Salesforce earnings coming up. Bella Albrecht [After Earnings, Is Alibaba Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Alibaba Stock a Buy, a Sell, or Fairly Valued?]( With market share loss in China’s e-commerce business, here’s what we think of Alibaba stock. Chelsey Tam [After Earnings, Is Walmart Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Walmart Stock a Buy, a Sell, or Fairly Valued?]( With Sam’s Club sales and increased operating margins, here’s what we think of Walmart stock. Noah Rohr Popular This Week [Morningstar’s Tax Guide and IRA Resources]( Here are the answers to some common questions about taxes and IRAs. Carole Hodorowicz, Tori Brovet [The Best Energy Stocks to Buy Now]( These five undervalued energy stocks look attractive today. Tori Brovet, Margaret Giles [The Best Tech Stocks to Buy]( 8 undervalued tech stocks offer attractive prices in a predominantly overvalued sector. Jack Armanini [The Best Biotech Stocks to Buy]( Thanks to rapid innovation and strong product launches, some biotech stocks look attractive. Jack Armanini [Best AI Stocks to Buy Now]( These stock picks stand to benefit most from developing artificial intelligence technologies. Tori Brovet, Susan Dziubinski [The Best Bond ETFs]( The fixed-income exchange-traded funds on this list earn Morningstar’s top rating heading into 2025. Tori Brovet [The Election Is One More Headache for Clean Energy ETFs]( The group has lagged in the past few years. Gabe Alpert [Recent Company Earnings]( Think Like an Analyst With Morningstar Investor Understand funds and stocks from all angles with Morningstar Investor's powerful—and proven—investment ratings and research. Find and compare securities using our comprehensive valuation and performance metrics and get our continuous, unbiased take on the long-term value of thousands of investment opportunities. Investor is your one-stop shop for making better investment decisions. [Start your free trial today](. 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