Weekly Wrap: The GameStop Short Squeeze, Morningstar's 2021 Portfolio Tuneup, and More
We recap the week on Morningstar.com and note the most popular stocks, funds, and exchange-traded funds.
|Editor's note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
25 Picks Based on Experts' Forecasts
Experts think international stocks are attractive. Here are some of Morningstar's best ideas for non-U.S. equity exposure.
3 Funds for an IRA
Where are we seeing good ideas?
What the Heck is Going on With GameStop?
We explain what a short squeeze is and how it works.
With GameStop, Hedge Funds Might Enjoy the Last Laugh
If stock prices become irrational, hedge funds rather than individuals stand to benefit.
Find the Right Investments for Your Retirement Portfolio
Your knowledge level, desire to be hands-on, tax status, and tolerance for short-term volatility can help you identify the right investments.
Fourth-Quarter 2020 Market Insights in 8 Charts
Morningstar's analysis demonstrates the disproportionate economic recovery from the coronavirus pandemic.
Portfolio Planning and Personal Finance With Christine Benz
Accumulators: Is Your Retirement Plan on Track?
Rules of thumb won't cut it for this important question. How to customize based on your own situation.
Can Your Portfolio Withstand Volatile Times?
Volatility can be around any corner.
Guess What? It May Actually Be Different This Time
In volatile market environments, tune out the pundits and take a look in the mirror.
Baron Partners' Huge Tesla Stake Leads to Downgrade
Having 47% of net assets in this holding highlights the fund's lax risk controls.
T. Rowe Price Blue Chip Growth's Manager to Retire
Larry Puglia will step away after leading the fund for 28 years, but its future is still bright in the hands of successor Paul Greene.
The Dramatic Evolution of Emerging Markets
What does the dynamic nature of these markets mean for portfolio construction?
Rocketing Stocks Short-Sheet Long-Short Equity Funds
An epic rally in the underdogs of Wall Street illustrates the challenges of short-selling.
A Fine Choice for Small-Value Believers
The well-resourced team at T. Rowe Price Small-Cap Value takes a sensible approach to investing in small companies.
Is There Opportunity in Teladoc?
The company that is eliminating waiting rooms at the doctor's office.
Stock Analyst Updates
PepsiCo and Coca-Cola Saw Diverging Fortunes in 2020
The two most salient differences--portfolio composition and geographic footprint--will prove decisive for anyone looking to reconcile their divergent performances in 2020.
J&J Posts Solid Q4 and Issues Favorable 2021 Guidance
We plan to moderately increase our fair value estimate based on the improving outlook.
Verizon Posts Solid Q4 Results as C-Band Auction Looms
We're maintaining our $57 fair value estimate.
Beyond Meat and Pepsi Join Forces for Plant-Based Plans
The Beyond Meat-Pepsi joint venture has strategic merit, although the stock reaction is likely overdone.
Digital Engagement and Drive-Thru Supporting SBUX
A year after the coronavirus pandemic first shuttered Starbucks stores in China, the company demonstrated its continued dominance in the coffee space in the first quarter of fiscal 2021, with adjusted EPS of $0.61 that exceeded both our forecast of $0.52 EPS and its own guidance. We will not be making any material changes to our fair value estimate of $100, and shares strike us as fully valued.
Gaming and Azure Drive Microsoft Strong Results; FVE Up
Microsoft is benefiting from a second wave of digital transformation as well as strength in gaming, which helped the company once again drive material upside compared with its revenue and EPS outlook for the quarter. Our fair value estimate moves to $263 from $235 per share.
GE Knocks the Cover Off the Ball With Q4 Free Cash Flow
GE's 2021 industrial free cash flow guide calls for $2.5 billion to $4.5 billion of industrial free cash flow, above our prior expectations. As a result, we are raising our fair value estimate.
Investments Pressure AT&T but Lift Customer Growth
Our fair value estimate remains $36, and we believe the stock is attractive.
Boeing Reports Improvement Marred by Reach-Forward Loss
We’re lowering our fair value estimate, implying that Boeing's commercial deliveries do not sustainably reach 2018 levels until 2025.
Facebook Reports Impressive Q4; Raising FVE to $335
This wide-moat name has become attractive as it is now trading at a 19% discount to our fair value estimate.
Apple's December Quarter Sales at Record Heights
We are raising our fair value estimate for narrow-moat Apple to $98 per share from $85 as we incorporate a stronger near-term outlook due to the current 5G iPhone cycle and ongoing work- and learning-from-home dynamics bolstering Mac and iPad segments.
Tesla Closes 2020 With a Strong Quarter
Tesla reported fourth-quarter results that missed the Refinitiv consensus adjusted diluted EPS of $1.03. EPS instead grew 95.1% year over year and by 5.3% sequentially to $0.80.
After a Tough Year, McDonald's Shares Look Compelling
We think the wide-moat company offers investors an attractive risk/reward proposition at current prices.
T. Rowe Price Enters 2021 With Record AUM
We're increasing our fair value estimate for the wide-moat asset manager.
The Long View Podcast
Gerard O'Reilly: Control for the Unexpected, Focus on the Expected
DFA's co-CEO and chief investment advisor shares the latest on the launch of its ETFs, the importance of client relationships, and the role of academic research in the firm.
A Broken Record: Flows for U.S. Sustainable Funds Again Reach New Heights
Net flows of $51 billion in 2020 were more than double the total for 2019 and nearly 10 times more than in 2018.
Can a Rule of Thumb Be a Shortcut to Financial Well-Being?
Our research explores how financial rules of thumb can help or hold back investors.
Was Tesla Key to ESG Outperformance Last Year?
Maybe, but there were other factors at play.
Investing Shouldn't Feel Like a Trip to Vegas
Don't put your savings on the line trying to guess what the herd will do next, as we saw with GameStop this week.
Advice to the New SEC Chair: Balance Investor Protection and Choice
Here are five areas to watch.
5 Financial Lessons for New Investors
Our Gen Z employees share the financial lessons they learned from the pandemic.
Insights From Author Stuart Lucas, 'The Taxable Investor's Manifesto'
How to invest on an unequal playing field.
SPACs Party Like It's 2020
The enthusiasm for blank check companies continues in 2021, and electric vehicles and mobility tech could benefit.