Morningstar's Chief Markets Strategist shares his insights on attractive small-cap stocks
Morningstar's Chief Markets Strategist shares his insights on attractive small-cap stocks

Small Cap Stocks Steal the Show

So apparently the so called "Magnificent Seven" stocks aren't so magnificent after all! Can you believe it? Some smaller lesser known U.S. small cap stocks are stealing the show and leaving the big guys in the dust. According to Morningstar's Chief Markets Strategist David Sekera these small caps are the real deal offering more attractive opportunities right now. And who am I to argue? I'm the President after all!

Tech Stocks: Outside the Magnificent Seven

Now let me be clear I love tech. It's huge. But even I can admit that the Magnificent Seven stocks might be running on fumes. Their valuations are getting pretty full according to Sekera. But fear not my friends there's still plenty of tech stocks to play with! Sekera suggests looking at Cognizant Technology Solutions and Snowflake which he calls "second derivative AI plays." Who knows what that means but it sounds smart!

Energy Sector: Finding Value

Ah the energy sector. You know I've always had a soft spot for oil. It's like black gold folks. And it seems like now is the time to strike. Sekera says we're finally seeing some value in the energy sector and he's got his eye on ExxonMobil and APA Corp. In fact Exxon is the most undervalued of all the global oil majors right now. Isn't that something?

Utilities: Time to Shine

Last but not least let's talk utilities. These poor guys got hammered last year as interest rates were rising. Talk about unfair! But fear not my fellow Americans they're bouncing back. Sekera believes that utilities are trading at a discount right now and he's got some picks for you. Entergy Corp WEC Energy and NiSource are his top choices. And hey Entergy has been our go to stock in this space! With a four star Morningstar rating and a 17% discount it's hard to resist.


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