5 Stocks to Buy Before They Become Expensive I August 11, 2025

About this Video

• Video Title: 5 Stocks to Buy Before They Become Expensive
• Channel: Morningstar, Inc.
• Speakers: Susan Javinsky, Dave Sakara
• Duration: 00:43:39

Introduction

This Morningstar video discusses market updates, economic indicators, earnings reports of specific companies, and provides five undervalued stock picks for investors. The hosts analyze recent market trends, including tariffs and inflation, and offer insights into the valuation of various sectors and individual companies.

Key Takeaways

• Tariff Updates: New tariffs on semiconductors and potential tariffs on pharmaceuticals are discussed, with implications for US manufacturing and trade negotiations. Ongoing negotiations with China are highlighted as a key factor influencing market sentiment.
• Economic Indicators: Expectations for CPI and PPI numbers are analyzed, with implications for inflation and potential Federal Reserve policy responses.
• Earnings Reports: Analysis of several companies' earnings reports, including Palantir, Eli Lilly, Devon Energy, International Flavors & Fragrances (IFF), and Flora. These analyses cover revenue growth, earnings, guidance, and valuations.
• Market Outlook: The overall market is deemed fairly valued, although certain sectors and individual stocks are identified as undervalued. Risks in the market, such as ongoing trade negotiations and economic growth concerns, are also discussed.
• Stock Picks: Five undervalued stocks are recommended: Clorox, Eversource Energy, Berkshire Hathaway, CNH Industrial, and Polaris. The rationale for each pick, including valuation, dividend yield, and company-specific factors, is explained.