1 October we become SureStone CapitalSame team, same ABN. Our website and email addresses move to surestone.com.au.
Preparing video
Dave Sekera from Morningstar observes that third-quarter earnings have surpassed expectations, making it easier for companies to meet targets. However, increased CapEx spending pressures major stocks like Microsoft (NASDAQ: MSFT), Alphabet (NASDAQ: GOOG), Meta (NASDAQ: META), Netflix (NASDAQ: NFLX), and Tesla (NASDAQ: TSLA).
Dave notes the US stock market trades at a 5% premium, with small caps undervalued at a 12% discount and large caps overvalued at a 7% premium. He sees value stocks as more attractive, while growth stocks face downward pressure amid expected economic slowdown.
Dave highlights utilities trading at a 14% premium, cautioning against overvaluation. He sees opportunities in communications, particularly with Alphabet’s undervaluation, despite antitrust issues. Energy also offers rewarding dynamics, with Exxon (XOM) seen as a key pick.
