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Stock Stories

The white goods retailer has seen increased sales growth over the last year but how long will this last?

Rising interest rates and a challenged economic outlook confront the big banks but will this dampen their outlook.

Morningstar equity analyst Jon Mills believes the iron ore miner is repositioning themselves as a producer of “forward facing commodities”. 

It’s almost a year since the Evergrande crisis unfolded. How have managers changed their allocations to the sector, if at all?

The miner won't take no for an answer, they're likely to be back with even more cash says Morningstar.

The biggest reason to talk to others is to challenge "confirmation bias", the habit of paying attention only to news or views that agree with an investor's beliefs.

Labour shortages and reduced capacity are making it difficult for the sector to capitalise on the surge in demand for travel.

Technology and consumer cyclical stocks are the leading sectors since the middle of June, but the jury is very much out on whether it is just a relief rally or a more durable trend

Investors bet demand for fuel and metals will fall as central banks raise interest rates to battle surging inflation.

Uber, Starbucks and brewing giant Anheuser-Busch (of Budweiser fame) should all benefit as consumers swap back to services.

Beaten-down industries, such as airlines, hotels, cruise lines and gaming should benefit from a return to normal spending patterns. 

Chinese stocks, including Alibaba, have staged a big rebound. Here's what it might take for the rally to continue

ANZ's $4.9 billion acquisition of Suncorp's banking arm will need to deliver on its $260 million in cost synergies and more for shareholders to see the benefit.

Despite rising worries of recession and a bear market, stock analysts have become more optimistic. That could be a risk for investors.

Too many investors were willing to jump on the buy-now-pay-later bandwagon at any price, says Morningstar equity analyst Shaun Ler.

These undervalued software companies can provide a counterweight to stocks swept up in economic upheavals.

Here’s the new list of Morningstar’s top analyst picks for the third quarter.

A lengthy legal battle now awaits Elon Musk, after he pulled out of a deal to purchase social media platform Twitter at a premium

Government stimulus and cheap valuations are changing the risk/reward equation for Chinese equities, say fund managers.

Revolutionaries rarely survive the revolution.

A trio of ASX 200 lithium miners are now among the most shorted stocks on the exchange.

More current cash usually means less future capital.

If share price moves that followed a handful of recent earnings downgrades are any indication, that adjustment could prove painful.

The Aussie winemaker is well on the way to moving on. 

Shares of microchip-parts suppliers, including Teradyne and ASML, are available at steep discounts, and the companies are poised for long-term profits.

Australian equities remain attractive thanks to limited exposure to the rising inflation and rates gripping markets.

Firetrail's head of investment strategy, Anthony Doyle talks through his global equities picks in the sustainable space. 

Australian equities remain attractive thanks to limited exposure to the rising inflation and rates gripping markets.

The regularity of market crashes and declines is a reminder that patience is key to investing in equity markets.

Oil prices are slipping after a months-long runup. What comes next for the local energy sector?

Multi-asset portfolio managers advise turning to Asia as a diversifier.

Analysts worry a slowing economy will lead consumers to cut back on spending at brands like Bunnings.

Hints of a softer economy and inflation buoy sentiment.

“Boomer fantasy” is how Australian Council of Trade Unions Secretary Sally McManus describes claims that big wage rises will lead to 1970s-style inflation.

Don’t bother with Tesla—BorgWarner, Sensata, and other companies throughout the EV supply chain are trading at discounts and looking good for the planet.

A look at the Morningstar star ratings for shares suggests so.

For the first time in decades, bonds haven’t protected balanced portfolios. What to do?

Hopes for a "soft landing" live on at the Reserve Bank even as optimsim fades overseas.

Profitless technology companies are tarring a sector filled with companies churning out earnings today.

Morningstar analysts rank ASX sectors by how resilient each is to the threat of inflation, rising rates, falling valuations and an economic slowdown.

Understanding this year’s stock market woes.

China’s efforts to corner iron ore markets are more bluster than bite, says Morningstar's mining analyst.

On interest rates, valuations and corporate margins we remain far from long-term average.

Trading activity is down as investors hunker down to weather the storm.

What’s going on? What could happen next? How should long-term investors respond? Morningstar explains.

The selloff has a whiff of short-term panic about it.

Sections of commercial real estate to stay resilient to higher prices amid a sharp selloff in the REIT sector.

Panic sellers may be playing into the hands of these institutional investors.

Economic moats and dividend yields north of 5% in fiscal 2023.   

Andrew Clifford offers mea culpa for missing the growth stock boom but warns a new playbook is now required.

Taiwan Semiconductor, Nvidia, and other chipmakers have been hit by supply-chain woes, but their stocks are at their cheapest in many years.

Analysts rush to revise forecasts upwards with many tipping rates just north of 2% by December.

Even with the market's bounce, the selloff provides a chance to invest in significantly undervalued stocks.

It looks like the economy is shifting to a steadier, healthier pace of growth.

Big tech is cutting staff, what does this tell us about the chance of a recession?

The demerger was a way for the energy company to keep its lenders onside. Assets sales or dividend cuts may now be required.

Economic reopening and exit of rivals leaves analysts hopeful about the future of the Australian property group.

Or, how I learned to stop worrying and love the ride.

There are signs the tide may be turning even as challenges continue in some sectors.

Facebook’s parent is trading at just half of what Morningstar’s analyst thinks it’s worth.


Companies across financial services, healthcare and real estate are trading at double digit discounts to fair value.

Sharp declines at US giants Walmart and Target could be canaries in the coalmine for local retailers.

If you're within 10 years of retirement, this eight-step review can help you improve your situation--and your peace of mind.

Inflation fighting assets include commodities, defensive retailers and those companies able to pass along rising prices.

Falling economic growth in China is weighing on commodity demand although analysts believe a rebound is likely as officials promise more investment to bolster growth.

A bear market is the perfect time to look under the hood of your portfolio and financial plan.

Incoming Treasurer, Jim Chalmers says he is facing the “trickiest economic conditions inherited by an incoming government since the Second World War”.   

US equities puke while the Australian labour market keeps kicking goals.

Shares are trading at a substantial discount to the offer price ahead of the 13 July shareholder vote.

A near-monopoly on Australian lotteries will give Lottery Corporation steady infrastructure-like earnings when it lists next Tuesday.

As recession fears grow many remain optimistic central banks will engineer a soft landing.  

US service inflation rises from the grave and Xero reports net profit below Xero

Aussie broker Selfwealth says investors are moving cash into its newly-launched Hong Kong trading accounts.

The upcoming battle over management’s demerger proposal could set the stage for a third tilt at the company.

Progress on cost cutting and cash rate on positive trajectory to benefit the only undervalued major bank.

Equity analyst Nathan Zaia has doubts about the sustainability of high-profit levels.

The fund manager is more bullish than most on resources and financials.

They are off to their worst start in since, well, forever.

Now AGL’s largest shareholder, Cannon-Brookes plans to vote against management’s demerger proposal, which Morningstar supports, at the annual general meeting in June.

The investing legend might take an interest in these high-quality stocks if Berkshire Hathaway were nimble enough.


Morningstar analysts believe the drivers of the earnings disappointment will blow over and KKR is not going anywhere.

Consumer stocks have provided some shelter from the storm, but Big Tech has resumed its decline.


Musk turns from Tesla as he seals the deal on Twitter.

A booming local economy and a share market packed with miners and banks should offset any damage from higher rates.

Morningstar analyst Brian Han believes that growth is on the way for undervalued telco TPG.

Barbarians at the gate for Ramsay as IMF gives Australia the thumbs up.

Commodities have a mixed record as stagflation threatens a return after a 40-year absence. 

Netflix shares plunge, with subscriber losses set to continue as competition for the streaming pioneer from Disney and others intensifies.

Analysts point to a positive link between the asset class, inflation and low sensitivity to economic growth concerns.

The mulit-billionaire entrepreneur launched a broadside at the lack of free speech on social media in regulatory filings, explaining he wanted to "unlock" the platform's value

Morningstar editorial director for sustainability Leslie Norton explains the role of food companies in producing innovative answers to our food woes.

Changes leave several resource companies fairly-valued as the sector gets pricy.

Broad based first-quarter improvement in equity market valuations creates opportunities for investors.

Morningstar's Model Income Equity Portfolio is an actively managed concentrated portfolio consisting of stocks in the S&P/ASX 200 Index.

Morningstar analysts maintain that despite problems the sector is here to stay.

Aged care provider is bucking the industry trend of low profitability and falling occupancy.

Ford has an ambitious plan to reclaim its glory days by making electric versions of some of its most iconic brands.

Australian opportunity attractive. Ryman selloff overdone.

Norway’s sovereign wealth fund among those realising gains from the commodity boom.

Experts say the conflict will fast-track the energy transition and boost the prospects of clean energy producers.

Commodity-sensitive stocks take big gains, while supply chain issues and higher rates sent the worst performers crashing.

Meet the publicly-listed companies cashing in on cryptocurrency demand.

Analysts expect any benefit to be transitory with oil and gas prices to begin normalising in 2023.

There are some merits to the deal, but they are presently difficult to quantify.

Opportunities emerging despite macroeconomic concerns.

The board is likely to knock back or negotiate the “opportunistic” offer.

Morningstar analysts expect strong growth for wide-moat software companies.

The "need for speed" stalled growth in 2021, but investments will steel Amazon's competitive threat in Australia.

More strong hiring in March is good news for the economy.

With the jump in Twitter stock after Musk's purchase, shares are still undervalued, but heading into fairly-valued territory

Shareholders should take comfort in Telstra's orderly chief executive succession process, says Morningstar's Brian Han.

This month we have 13 companies in our Best Stock Ideas list. Since last month, we have added TPG Telecom and removed Southern Cross Media Group.

The commodity half of the value rally looks set to slowly ease even as interest rate forecasts grow. 

Clear catalysts for earnings recovery as headwinds subside.

We maintain our fair value estimates for SOL and BKW.

The major drivers of ASX dividends should be untroubled by a rising rate environment.

These names are widely held among some of our favorite concentrated-fund managers.

Near-term earnings to increase materially from Ukraine/Russia natural gas supply disruptions, but long term unchanged.

The most undervalued major market in the world is also one of the most complicated. 

These companies are poised for a revenue bump as travel rebounds.

Analysts believe the asset manager sell-off overlooks some of the attractive traits of businesses like Magellan, Platinum and Pendal. 

Four sectors and seventeen stocks for the bulls and the bears on value's latest rally.

Here is how we expect the wide-moat firm to manage the insurer and reinsurer Alleghany Corporation.

As the market stays in correction territory, high-quality undervalued stocks including Biogen and Salesforce look poised to gain.

A rising wages environment is a risk for company profitability, but this could be offset by price increases, experts say.

Possible disruptions to wheat production in the Black Sea are unlikely to impact GrainCorp over the long run.

We make no changes to any of our fair value estimates for the miners for now, but intend to factor in a potential supply shock to our valuations soon, where relevant.

Morningstar Best Ideas BMW and GM rub shoulders with narrow-moat auto part suppliers.

A shot of Starbucks shares could boost portfolios as rewards program drives growth.

Some of Asia’s best companies like Tencent and Alibaba have fallen deep into undervalued territory amid recent share price turmoil.

Kogan to ride the online shopping wave as tide turns on brick-and-mortar retailing.

Five companies, including Yum China, may delist by 2024 if they are unable to comply with US auditing standards.

Companies like to play with the price of their stocks sometimes…here’s why and what you should know.

Plus the largest anticipated tech IPOs of the year.

Morningstar's Model Income Equity Portfolio is an actively managed concentrated portfolio consisting of stocks in the S&P/ASX 200 Index.

Years of underinvestment in supply point to elevated energy prices ahead.

Profits top expectations as Australian firms warn of uncertainty ahead. 

With valuations coming down, wide-moat stocks may be in a better position for a period of rising rates and inflation.

We strongly agree with the board.

Whilst Australia has achieved a lot, equality in the corporate context has not yet occurred. However, it is encouraging that it remains a high priority for our biggest companies.

How commodities and other nontraditional investments have affected portfolios.

Generally positive results from a remarkable 2021. The outlook for 2022 now mired in geopolitical chaos.

Two Russian miners caught up in the Russia sell-off are to leave the FTSE 100.

These quality companies are trading at double-digit discounts to fair value.

Financial warfare intensifies ahead of MPs' vote on restricting companies from listing and raising money in London. We list the main companies and those on the sanctions list.

Even as U.N. panel finds globe is warming fast, oil prices climb.

This month we have 13 companies in our Best Stock Ideas list. Since last month, we have added Kogan and WiseTech Global and removed Cimic Group and Whitehaven Coal.

The Oracle of Omaha’s annual letter is full of lessons for investors. 

Woodside, South32 and Graincorp are among those that could benefit from a spike in oil, grain and aluminium prices as war rages in Ukraine.

Growth stocks are now broadly undervalued and the overall market now looks fairly priced.

On 1 March 2022, Commonwealth Bank of Australia launched an offer for CommBank PERLS XIV Capital Notes, to raise $750 million, with the ability to raise more or less.

Analysts say supply chain constraints and labour shortages are expected to remain a theme in the second half.

Seven mining companies with copper in the portfolio.

Rising rates remain a headwind, but valuations are now looking more reasonable.

Dividends fall following the spinoff of liquor and gaming into the separately listed Endeavour Group.

Rising prices are key to understanding AGL’s future.


Best Stock Ideas

Morningstar Premium members can access all our Equity Best Ideas via the new website.

Model Income Equity Portfolio

Morningstar Premium members can access our Model Income Equity Portfolio via the new website.

Your Money Weekly More

18 Aug 2022
YMW Issue 31 | There is still plenty of work...


 Recent Changes

ASX Code Analyst Recommendation Reason
ORG    Unchanged
AIA    Unchanged
AIA-NZ    Unchanged
MPL    Unchanged
PME    Unchanged
HPI    Unchanged
FBU Downgrade
FBU-NZ Downgrade

Sector Valuation

Financial Services
As of:
> 1.0=Overvalued