I'm Susan Jabinsky, co-host of the Morning Filter podcast. On a recent episode, Morning Star chief US market strategist Dave Sakara discussed three stocks to invest in after earnings. Coca-Cola, Hallebertton, and Hershey.You'll find a link to the podcast episode below if you want to hear more about why Dave likes these stocks. But today, I'm talking about three more stocks that look good to Morning Stars analysts after earnings. These stocks are all from wide mode companies and they all look undervalued acc ...

Another example is Amazon (NASDAQ: AMZN). As an early leader in e-commerce, Amazon traditionally eschewed near-term profits to continue investing in its massive distribution and fulfillment network. The investment in its delivery network and expanding assortment of items took tremendous investment over many years. But flash forward to today, and Amazon's ability to deliver items within one or two days is unmatched. If anyone attempted to compete by building a similar network, it would similarly take that am ...

Core Viewpoint - Financial stocks have generally performed well this year, but some companies face specific challenges that may lead to further declines in their stock prices [1][2]. Group 1: Chime Financial - Chime Financial went public in June with an IPO price of $27 per share, debuting at $43, but has since fallen to around $19 per share [4][5]. - The company is expected to reach near-breakeven by 2026, with losses per share projected to decrease from $4.24 to $0.28 [5]. - Chime's current market cap is $7 billion, and failure to meet profitability expectations could lead to a significant de-rating of its shares [7]. Group 2: Progressive - Progressive's shares dropped after reporting lower-than-expected earnings due to a mandated rebate to Florida customers, stemming from excess underwriting profits [8][9]. - Increased competition in the insurance market may further pressure Progressive's pricing and economic moat, leading to a potential valuation drop [9][11]. - Currently, Progressive trades at around 15 times forward earnings, which is higher compared to peers like Allstate, trading at less than 10 times [11]. Group 3: Upstart Holdings - Upstart Holdings has seen a decline in its stock price, primarily due to concerns following the bankruptcy of Tricolor, a subprime auto lender, raising fears about consumer lending performance [12][13]. - Although Upstart licenses AI-based loan underwriting technology and originates loans for resale, a downturn in the consumer lending market could negatively impact its revenue [13][15]. - Trading at 39 times forward earnings, any downward revision of growth expectations could lead to further declines in Upstart's stock price [15].

Core Insights - Berkshire Hathaway will soon release its 13F report detailing stock transactions by CEO Warren Buffett and his team [1] - Focus is on two of Buffett's favored companies, Coca-Cola and American Express, which he considers "forever stocks" [2] Coca-Cola (KO) - Coca-Cola has established a wide economic moat due to strong intangible assets and significant cost advantages [4] - The company has a solid balance sheet and is well-prepared to handle macroeconomic volatility [4] - KO's cash flows are deemed reliable, leading to a low uncertainty rating [5] - Despite macro headwinds, KO experienced volume growth in the third quarter, with expectations to raise the fair value estimate by a few percentage points post-earnings [5] - Current valuation for KO stock is estimated at $72 per share [6] American Express (AXP) - American Express has also created a wide economic moat through its unique closed-loop network, which includes issuing credit cards, operating the payment network, and maintaining direct merchant relationships [6] - The company has a well-positioned balance sheet and a credit card portfolio with historically lower credit risk compared to peers [6] - Strong third-quarter results were reported, driven by increased transaction volume and net interest income [7] - The stock is valued at $265 per share [7] Investment Comparison - Between Coca-Cola and American Express, Coca-Cola is considered the better buy at present due to its stock price being more aligned with its fair value estimate, while American Express trades at a significant premium [8]

Core Insights - American Express has demonstrated exceptional investment performance with a total return of 260% over the past five years, reaching an all-time high recently due to strong financial results in Q3 [1] - Despite a potentially expensive valuation, there are compelling reasons for investors to be optimistic about American Express stock [1] Group 1: Economic Moat - American Express possesses a powerful brand that attracts an affluent customer base willing to pay high annual membership fees for premium perks and rewards, resulting in charge-off rates below industry averages [3] - The company benefits from a network effect through its closed-loop payment system, where an increase in active cards enhances value for merchants and consumers alike, creating a more robust shopping environment [4] Group 2: Investment Considerations - Although American Express is not currently listed among the top 10 stocks recommended by The Motley Fool Stock Advisor, the company’s strong economic moat and competitive position are highlighted as key strengths [5][6] - The historical performance of stocks recommended by The Motley Fool, such as Netflix and Nvidia, illustrates the potential for significant returns, emphasizing the importance of evaluating investment opportunities carefully [6][7]

Core Insights - The analysis of Danaher Corporation (NYSE: DHR) indicates concerns regarding its competitive advantage and valuation, suggesting it may be overvalued [1] Group 1: Company Analysis - The focus is on high-quality companies that can outperform the market over the long term due to a competitive advantage and high levels of defensibility [1] - The analysis is primarily centered on European and North American companies, without restrictions on market capitalization [1] - The author's academic background includes a Master's Degree in Sociology with an emphasis on organizational and economic sociology [1]

Core Insights - Morning Star emphasizes the importance of companies with economic moats for long-term investment success, but also acknowledges that companies without moats can be attractive investments when priced with a significant margin of safety [1][2] Company Summaries - **Caesar's Entertainment**: This company is expected to capture a high single-digit revenue share of the $72 billion domestic commercial casino gaming market despite potential near-term challenges from tariff policies affecting travel and gaming demand. Concerns about high financing costs and elevated debt levels exist, but management has a history of generating cash flows to manage debt [3][4] - **Maricold Realty Trust**: The operator of temperature-controlled warehouses has seen its share price decline due to falling occupancy rates and rent pressures. However, there are signs that speculative supply growth will decrease in the coming years, which may support a recovery in occupancy. The stock is trading at a significant discount to its $27 fair value estimate, making it an attractive option for long-term investors [4][5] - **Fresh Pet**: Despite facing near-term challenges such as slower dog adoption rates and cautious consumer spending, Fresh Pet is well-positioned for growth due to its unique fresh distribution model and expanding store footprint. Innovations in bag production are enhancing product quality while reducing costs, which is expected to boost profitability and sales growth. The stock is currently trading at a deep discount to its $15 fair value estimate [6][7]

Core Insights - Apple's business success is heavily reliant on its services segment, which is growing at a faster rate than its hardware sales [3][4]. Group 1: Hardware Performance - Apple's iPhone continues to be a significant revenue driver, generating $44.6 billion in the third quarter [1]. - The hardware segment remains crucial to Apple's overall success, but it is not the only focus for investors [2]. Group 2: Services Segment - The services segment generated $27.4 billion in sales during the third quarter, reflecting a 13% year-over-year growth and a 108% increase compared to five years ago [3]. - Services provide recurring revenue, reducing reliance on the more volatile hardware sales [4]. - The services segment boasts a gross margin exceeding 70%, indicating higher profitability compared to hardware [4]. Group 3: Subscription Growth - Apple has over 1 billion paid subscriptions across its services, highlighting the strength of its ecosystem and user engagement [5].

Core Insights - Rollins, Inc. (NYSE: ROL) is identified as a strong business in the current market, characterized by stability and high growth with minimal fluctuations [1] Company Analysis - The company is recognized for its competitive advantage, often referred to as an economic moat, which allows it to outperform the market over the long term [1] - Rollins, Inc. operates in both European and North American markets, with no restrictions on market capitalization, encompassing both large and small cap companies [1] Analyst Background - The analysis is conducted by an individual with a Master's Degree in Sociology, focusing on organizational and economic sociology, and a Bachelor's Degree in Sociology and History [1]

Core Insights - Svenska Handelsbanken is distinguished as the oldest stock listed on the Stockholm Stock Exchange, highlighting its long-standing presence and stability in the banking sector [1]. Company Analysis - The analysis emphasizes the focus on high-quality companies that can outperform the market over the long term due to their competitive advantages, referred to as economic moats [1]. - The investment strategy is centered on companies in Europe and North America, without restrictions on market capitalization, allowing for a diverse range of investment opportunities from large-cap to small-cap companies [1]. - The analyst's academic background in sociology, particularly in organizational and economic sociology, supports a comprehensive understanding of market dynamics and company performance [1].