A Dividend Aristocrat to Buy That’s 18% Undervalued and Yields Nearly 4%

Plus: 3 dividend stocks for December, 3 undervalued stocks with momentum, and are Snowflake, Zscaler, and Salesforce buys? [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_stockstrategist&utm_content=50389&elqTrackId=7e7bcf1d290940dca927dc8500c29fa4&elq=f0ecd30058694460ae2dbab4afa1aa2b&elqaid=50389&elqat=1&elqCampaignId=25219) [Stock Strategist] Stock Strategist December 11, 2023 Good Morning! Here's the rundown on what's happening in the stock market. Stocks eked out additional gains last week, pushing to new highs for the year. Bolstering sentiment was a [jobs report]( showing continued healthy gains in hiring and an economy that looks [likely to avoid a recession](. However, the jobs gains weren’t strong enough to deter expectations for Federal Reserve rate cuts in 2024, although it appears any easing is now expected toward the middle of the year, and not in March as the bond market had begun to suggest. Next on the agenda is the November Consumer Price Index, which is expected to [show continued moderation in inflation](. When it comes to stocks, the big winners are tech names. One in particular has cutting-edge products riding a wave of transformative technology, staggering growth, sky-high profit margins, and a stock rocketing to the moon. The stock is Nvidia, of course. But that could have described Cisco back in 1999. Cisco shares went on to collapse in the dot.com bubble and have yet to regain their old highs. Does Cisco’s story hold lessons for investors looking at Nvidia today? [Click here to find out](. Economic Releases Scheduled for the Coming Week - Tuesday, Dec. 12 - November Consumer Price Index [report]( - CPI (month to month): +0% vs. +0% - Core CPI (month to month): +0.3% vs. +0.2% - CPI (year over year): +3.1% vs. +3.2% - Core CPI (year over year): +4% vs +4% - November [NFIB Small Business Index]( (90.7 in October) - Wednesday, Dec. 13 - November Producer Price Index [report]( - PPI (month to month): +0.0% vs. -0.5% - Core PPI (month to month): +0.2% vs. +0.0% - PPI (year over year): +0.85% vs. +1.30% - Core PPI (year over year): +2.2% vs. +2.4% - [FOMC Meeting]( - Thursday, Dec. 14 - Initial Unemployment Insurance Claims [report]( for the week ended Dec. 9: 225,000 vs. 220,000 for the week ended Dec. 2 - November Retail Sales: -0.2% vs. -0.1% in October All consensus estimates are sourced from FactSet. Investor Relations Weekly Calendar: Highlighted Corporate Earnings and More - Monday, Dec. 11 - Corporate Earnings: Oracle [ORCL]( - Wednesday, Dec. 13 - Corporate Earnings: Adobe [ADBE]( - Thursday, Dec. 14 - Corporate Earnings: Costco [COST]( For The Trading Week Ended December 8: - The Morningstar US Market Index rose 0.2%. - The best-performing sectors were communication services, up 1.1%, and consumer cyclical, up 0.9%. - The worst-performing sector was energy, down 3.5%. - Yields on 10-year U.S. Treasury notes rose to 4.23% from 4.22%. - West Texas Intermediate crude prices fell 3.8% to $71.23 per barrel. - Of the 847 U.S.-listed companies covered by Morningstar, 404, or 48%, were up, and 443, or 52%, were down. Which Stocks Are Up? Dish Network [DISH]( Norwegian Cruise Line [NCLH]( and AMC Networks [AMCX](. Which Stocks Are Down? Palantir Technologies [PLTR]( Plug Power [PLUG]( and Cava Group [CAVA](. And Don't Miss: - [A Dividend Aristocrat to Buy That’s 18% Undervalued and Yields Nearly 4%]( - [Nvidia 2023 vs. Cisco 1999: Will History Repeat?]( - [3 Undervalued Stocks With Momentum]( - [3 Dividend Stocks for December 2023]( Did a friend forward this email? You can [sign up for free here](. ADVERTISEMENT [media]( [media] [A Dividend Aristocrat to Buy That’s 18% Undervalued and Yields Nearly 4%]( [A Dividend Aristocrat to Buy That’s 18% Undervalued and Yields Nearly 4%]( This narrow-moat company just raised its dividend, too. Allen Good [Read More]( Share: [facebook]( [twitter]( [linkedin]( [3 Dividend Stocks for December 2023]( [3 Dividend Stocks for December 2023]( The dividend prospects for three firms with economic moats. David Harrell [5 Ultracheap Stocks to Buy With the Best Return on Investment]( [5 Ultracheap Stocks to Buy With the Best Return on Investment]( These undervalued companies have generated great returns in more ways than one. Susan Dziubinski [Best- and Worst-Performing Stocks of November 2023]( [Best- and Worst-Performing Stocks of November 2023]( Coinbase, Block, and Datadog post big rallies, while Agilon Health and Cigna slide. Tom Lauricella [Obesity Drug Stocks: Where to Invest Now]( [Obesity Drug Stocks: Where to Invest Now]( Eli Lilly and Novo Nordisk have staged big rallies. Here’s how investors can approach this potentially huge opportunity. Diana Anghel [After Earnings, Is Zscaler Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Zscaler Stock a Buy, a Sell, or Fairly Valued?]( With strong underlying drivers and earnings, here’s what we think of Zscaler stock. Malik Ahmed Khan [After Earnings, Is Salesforce Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Salesforce Stock a Buy, a Sell, or Fairly Valued?]( With revenue up 11%, here’s what we think of Salesforce stock. Dan Romanoff [After Earnings, Is Snowflake Stock a Buy, a Sell, or Fairly Valued?]( [After Earnings, Is Snowflake Stock a Buy, a Sell, or Fairly Valued?]( With the company continuing to dominate among database management systems, here’s what we think of Snowflake stock. Julie Bhusal Sharma [Tesla’s Anti-Union Model Faces a Massive Challenge In Europe]( [Tesla’s Anti-Union Model Faces a Massive Challenge In Europe]( A strike by Swedish mechanics has snowballed, with more unions joining actions against Tesla. Johanna Englundh [Earnings Yields vs. Bond Yields: Where Are They Today?]( [Earnings Yields vs. Bond Yields: Where Are They Today?]( And what that relationship indicates about future returns. John Rekenthaler [Nvidia 2023 vs. Cisco 1999: Will History Repeat?]( [Nvidia 2023 vs. Cisco 1999: Will History Repeat?]( The similarities and differences between two dominant tech stocks with huge rallies. Jocelyn Jovène [The Santa Claus Rally Came Early. Here’s What To Do Next.]( [The Santa Claus Rally Came Early. Here’s What To Do Next.]( Stocks surged in November, coming off low valuations as the market priced in the end of interest-rate hikes. David Sekera [What Makes Vanguard Total International Stock Index Fund One of the Best]( [What Makes Vanguard Total International Stock Index Fund One of the Best]( Low fees and wall-to-wall foreign stock exposure make this fund tough to beat as a core holding. Zachary Evens [3 Undervalued Stocks With Momentum ]( [3 Undervalued Stocks With Momentum]( The stocks of these companies with economic moats have rallied during the past month. We think they have more room to run. Susan Dziubinski [Top Stocks for Climate-Focused Investors]( [Top Stocks for Climate-Focused Investors]( These stocks are highly rated by Morningstar analysts and commonly held in climate funds. Alyssa Stankiewicz [5 Investing Rules I Break in My Portfolio]( [5 Investing Rules I Break in My Portfolio]( Don’t let perfect investing be the enemy of good. Adam Fleck Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Thanks for reading! 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](. © 2023 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602