In this new episode of The Morning Filter podcast, co-host Susan Dziubinski previews this week’s PCE numbers and explains why to watch the upcoming earnings reports from Micron Technology, FedEx FDX and Carnival CCL. She sits down with Morningstar senior technology stock analyst Will Kerwin to talk all things Apple, including the strength of the company’s economic moat, its AI strategy, the biggest risks it’s facing today, and what the stock is actually worth. They also discuss the challenges of valuing AI companies while so much is still unknown and whether investors should be willing to pay up for top AI stocks. They wrap with three tech stocks to buy that look attractive and several tech stocks that look “bubbly” today. Episode Highlights What this week’s inflation numbers may mean for the market Why to watch Micron Technology’s MU earnings report this week Whether Apple’s AAPL AI strategy is misguided and the risks the company is facing today Are Morningstar’s valuations on AI stocks too conservative? Undervalued stocks to buy before Wall Street catches on Read about topics from this episode. Apple: Hey Siri, Let&#x27;s Get Apple&#x27;s AI Strategy Back on Track After Earnings, Is Broadcom Stock a Buy, a Sell, or Fairly Valued? After Earnings, Is Arista Networks Stock a Buy, a Sell, or Fairly Valued? This Could Be One of the Best Growth Stock Buys in Today’s Market Got a question for Dave? Send it to themorningfilter@morningstar.com. You can follow Dave Sekera on X (@MstarMarkets) and on LinkedIn (Dave Sekera) to subscribe to his weekly newsletter and keep up to date with his latest research, and follow Morningstar on Facebook (MorningstarInc), X (@MorningstarInc), Instagram (MorningstarInc) and LinkedIn (Morningstar). If you would like more information about any of the stocks Dave talked about today can visit Morningstar.com for more details. Subscribe to The Morning Filter to get notified when we post next. We’ll see you on Monday! Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

3 Stocks to Buy Before the Market Reprices Them

The Morning Filter

# Full Transcript

**Podcast:** The Morning Filter

## Participants

- **Susan Dziubinski** (Morningstar)
- **Will Kerwin** (Morningstar)

## Transcript

Please stay tuned for important disclosure information at the conclusion of this episode. Hello, and welcome to The Morning Filter Podcast. I'm Susan Dziubinski with Morningstar.

Every Monday before market open, we talk about what investors should have on their radars for the week, some new Morningstar research, and a few stock ideas. Now, my colleague Dave Sekera is on vacation this week, so I'll walk through some things to keep on your radar. I'll then share an extensive interview I had last week with one of Morningstar's senior tech sector analysts. We took a dive into Apple's prospects. We discussed how to value AI stocks when everything's changing so quickly.

And we covered three undervalued stocks he says look like buys today. Now, we'll start today's episode with last week's Fed meeting. Now, as expected, the Fed held interest rates, but stocks pulled back after new chair Kevin Warsh appeared to lay the groundwork for an interest rate hike before the end of the year by emphasizing the importance of delivering price stability. Now, given that emphasis, the May PCE numbers coming out this week should be on your radar.

Earnings season has all but wound down with only a few companies reporting this week. Micron reports on Wednesday after market close. The stock is up more than 800 percent during the past 12 months. The company's benefiting from a tremendous memory pricing cycle driven by demand for artificial intelligence infrastructure. Now heading into earnings, Micron stock trades at more than twice Morningstar's $455 fair value estimate.

The stock was one of Dave's stocks to sell on the June 1st episode of the Morning Filter podcast. So we'll no doubt be talking about this one after earnings when Dave's back next week. FedEx reports on Tuesday, stocks having a great year. It's up about 38 percent. FedEx has cut costs to improve profitability. It's also spun off its less than truckload shipping business into a standalone company.

Morningstar thinks FedEx stock is overvalued heading into earnings. We think shares are worth $257. One more earnings report coming out this week to keep an eye on is Carnival. Stock's been on an upswing lately due in part to the reopening of the Strait of Hormuz. The company's also announced some new food and beverage concepts it's testing across its fleet.

Carnival stock is trading only a few dollars below Morningstar's $35 fair value estimate as we head into earnings. All right, let's pivot over to my conversation with Morningstar senior tech analyst, Will Kerwin. Now, Will and I chatted at the Morningstar investment conference last week on Wednesday, June 17th.

However, the day after Will and I chatted, Morningstar raised its fair value estimate on Apple stock to $290 per share, up from $270 per share, excuse me, after Apple CEO Tim Cook announced plans...

3 Stocks to Buy Before the Market Reprices Them

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

3 Stocks to Buy Before the Market Reprices Them

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.