Both wide-moat Monsanto and no-moat Bed, Bath and Beyond are trading below Morningstar's fair value estimates ahead of their earnings reports. Plus, Fed minutes due on Wednesday.
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 April 4.
After a busy data week, it will be a bit calmer as we kick off the second-quarter in earnest.
Janet Yellen's dovish speech last week raised hopes that rates would stay lower for longer despite emerging signs that inflation is heading higher. The minutes from the Fed's March meeting, due Wednesday, will provide another glimpse into the central bank's thinking.
Other data due to be released includes the ISM Services index and wholesale inventories.
Walgreens Boots Alliance will report quarterly results on Tuesday. The retail pharmacy has reported a series of mixed results recently, as it has seen solid growth in prescriptions and revenue, but that's been offset by gross profit pressure.
Monsanto has been facing a number of near-term headwinds--everything from a strong dollar to elevated costs. These issues are likely to weigh again on the firm's results, but we still see the firm as undervalued and think the market is underestimating the company's long-term prospects.
We also see value in Bed, Bath and Beyond shares today. The firm had a tough holiday season and provided a tepid outlook for the results due this week. But we think over the long-term, the firm's e-commerce initiatives and expansion of the Cost Plus and BuyBuy Baby brands will help boost traffic.
Stay tuned to Morningstar for our take on all of these stories throughout the week.
