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Morningstar provides a constant source for investment ideas with our comprehensive analyst reports on equities, ETFs, and credit ratings from more than 100 analysts. U.S. Interactive Brokers clients can sign up for a free trial of these reports in Account Management.

Morningstar

October 21, 2019

A Checklist for Open Enrollment Season

One of the best aspects of full-time employment is being eligible for employer-provided benefits: health insurance, participation in a 401(k) plan, and so on. But as grateful as you may be to have access to those benefits, registering for them can be a bit unnerving, too.

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Morningstar

September 20, 2019

Does It Ever Make Sense to Index Portfolios?

Almost nobody thinks that indexing investment portfolios makes sense. There are a few exceptions. Certain versions of hedge fund indexes exist. Clearly, some people will defend the proposition. However, I have never met any of them, except for Andy Lo in passing. When Bloomberg’s Matt Levine scoffed at indexing hedge funds, he spoke for nearly all investment researchers. Morningstar’s team, for example, is universally skeptical.

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Morningstar

September 13, 2019

What Do Cheaper iPhones Mean for Apple?

We don’t expect a rebound in Apple’s phone sales this year, and we think the stock’s overvalued. Apple (AAPL) held its annual product showcase this week, during which it announced the launch of three new iPhone models: iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max. he last two devices feature an OLED display while the former has a liquid-crystal display. Apple modified its pricing strategy with the iPhone 11.

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Morningstar

September 4, 2019

What Opioid Litigation Means for Healthcare Stocks

Across the United States, there are thousands of civil cases, mostly in state courts, represented by state prosecutors to compensate families who have been hurt by the opioid epidemic. The plaintiffs in these cases are accusing drug manufacturers of actively marketing addictive drugs and pharmaceutical distributors of failing to detect or report suspicious opioid orders.

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Morningstar

August 16, 2019

Macy’s Deflates, and Now It’s Even More Undervalued

Macy’s (M) share price dropped after the company reported second-quarter results and reduced its outlook for the rest of the year. We view the shares as attractive at current levels and believe the retailer won’t cut its current annual dividend of $1.51, which is yielding 9.3%. As we forecast Macy’s 2019 free cash flow at more than $1 billion, we think its annual dividend cost of less than $500 million is manageable.

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Morningstar

July 26, 2019

An Extensive Developed-Markets Fund

Foreign stocks are a great way to diversify a U.S.-focused portfolio as they provide access to a wider opportunity set and don’t always move in the same direction as the U.S. market. A broad foreign developed-markets fund, like Vanguard FTSE Developed Markets ETF (VEA), captures a majority of the overseas market while diversifying across a wide range of countries and currencies. VEA further builds on its diversification benefits by including small-cap stocks. Its low fee and outstanding index-tracking performance add to its appeal and underscore its Morningstar Analyst Rating of Silver.

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Morningstar

June 21, 2019

Crazy Talk, Revisited

The worst investment thinking comes at market extremes. The nuttiest period in my 30-year investment memory was the peak of the New Era, in 1999-2000. “Dow Jones 36,000” was a best-seller. Morningstar technology analysts received death threats for downgrading stock ratings.

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Morningstar

June 14, 2019

Are High-Yield Bonds Necessary?

Practically speaking, high-yield bonds are hybrid securities. As with investment-grade bonds, high-yield bonds pay income while also offering some default protection (albeit not as much as investment-grade bonds).

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Morningstar

May 24, 2019

There Is No Technology-Stock Bubble

You can hear the whispers. Technology companies cost far too much. The five FAANG stocks drive the entire stock market (Facebook, Apple, Amazon.com, Netflix, [Alphabet] Google). Investors have become obsessed with “unicorns”–privately held technology firms that are valued at more than $1 billion. Some openly ask the question: Has the New Era returned?

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Morningstar

May 8, 2019

Why Index Funds and ETFs Are Good for Retirees

Millennial investors were more likely than investors in other age groups to own exchange-traded funds, according to a survey from investment provider BlackRock. Among investors aged 21 to 35, 42% said they owned ETFs in 2017, up from 33% of investors in that same age group who said they had ETFs in their portfolios the year prior.

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Morningstar

May 3, 2019

Champion Boosts Undervalued Hanesbrands

Hanesbrands (HBI) slightly exceeded our sales and earnings expectations in the first quarter. Sales of $1.59 billion beat our forecast of $1.53 billion despite an unexpectedly high year-over-year negative $46 million impact from foreign currency. GAAP and adjusted earnings per share of $0.22 and $0.27, respectively, both exceeded our forecast by $0.01.

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