3 Stocks to Buy After They’ve Sold Off

#Morningstar  #StockSelloff #StockInvesting

These stocks look undervalued.

00:00 Introduction

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Susan Dziubinski: I’m Susan Dziubinski with Morningstar. August has proven to be a volatile month for stocks. But investors who’ve had some cash on hand have had an opportunity to buy some great stocks at attractive prices this month. In fact, after the market selloff between Aug. 1 and Aug. 8, more than three dozen stocks fell into buying range according to Morningstar’s metrics.

Amazon stock recently fell into buying range. The wide-moat online retailer reported solid second-quarter results; its third-quarter outlook lines up with our revenue estimate and exceeded our operating income estimate. As a result, Morningstar notched up its fair value estimate on the stock by a couple of dollars after earnings. Amazon continues to improve efficiencies throughout its network, which lowers costs, improves delivery speeds, and ultimately drives increased purchases by Amazon Prime members. We think shares are worth $195.

Chevron stock has slipped into buying range, according to Morningstar’s metrics. Second-quarter earnings fell short of expectations, and Chevron also announced that the arbitration panel addressing part of Chevon’s acquisition of Hess won’t rule until May 2025. Now, neither the earnings disappointment nor the ruling delay led Morningstar to change its fair value estimate of the stock, but we do acknowledge that the latter will add uncertainty that could weigh on shares. Given that, we think narrow-moat Chevon is a compelling investment for long-term investors, and we think the stock is worth $176.

Adobe stock has also begun trading in buying range again after running up during the second quarter. Adobe’s products dominate in the creative market, and that dominance underpins Morningstar’s wide economic moat rating for the firm. Adobe continues to introduce and leverage features across its various cloud offerings to drive a more cohesive experience, win new clients, upsell users to higher price point solutions, and cross-sell digital media offerings. We think Adobe stock is worth $635 per share.

For more stock ideas, be sure to subscribe to Morningstar’s channel and visit Morningstar.com.

Morningstar director Allen Good, senior analyst Dan Romanoff, and associate data journalist Bella Albrecht provided the research behind this segment.

What to watch from Morningstar.

2 New Wide-Moat Stocks With Long-Term Potential https://youtu.be/mcgLEdWjoFc?si=BDN0S1pg-oks_B8x

3 High Dividend Stocks to Buy Before They Become Too Expensive https://youtu.be/CMguWt2PHRE?si=0g-faTP0GhG4xa55

2 of the Best Undervalued Stocks to Buy in a Top-Performing Sector https://www.youtube.com/watch?v=vH-w6IV_ZoQ

3 Smaller Company Stocks the Best Fund Managers Are Buying https://youtu.be/kjzpXRu-CYg?si=9R24d3AC3QmRDv89

Read what our team is writing.

Susan Dziubinski https://www.morningstar.com/people/susan-dziubinski

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