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Week Ahead: 2 5-Star Firms Report Results

Jeremy Glaser

For Morningstar, I'm Jeremy Glaser. Welcome to The Week Ahead, our quick take on what investors should have on their radar screens for the week starting Feb. 15.

Fourth-quarter earnings will slow down considerably this week, but we will get updates from two firms that our analysts think are trading for a considerable discount to their fair value estimates.

First up will be Express Scripts on Tuesday. We think the pharmacy benefit manager is well positioned to be a powerful player in the healthcare market regardless of any short-term concerns like contract negotiations with Anthem.

Then on Wednesday we'll hear from global online travel agency Priceline, which has been under pressure due to economic growth concerns, disruptions from November's terrorism attacks in Paris, and the Zika virus. We think these issues will have an impact on the firm's earnings, but that the positive long-term picture remains intact.

Wal-Mart, which reports Thursday, is also trading below our fair value estimate but is not in 5-star territory. Their earnings update comes after the firm's announcement in January that it was closing 100 small-format Express stores. We'll also be looking to see the impact of the company's continued investments in things like higher wages and better e-commerce.

Wednesday we will see minutes from the Fed's January meeting. It will be a good chance to see how the central bank is thinking about the impact global turmoil is having on the U.S. economy.

Economic data releases this week include housing starts, industrial production, and the consumer price index.

Stay tuned to Morningstar for our take on all of these stories throughout the week.