Analyst Watching Disney, Economic Stocks and Market Valuations This Earnings Season
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Dave Sekera will be listening for strategic changes by Disney to recapture the "Disney magic" and boost its streaming business. The stock has fallen over 50% from early 2021 highs.
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Several "real economy" stocks like Celanese, Air Products, Emerson Electric, and D.R. Horton are reporting earnings. Sekera wants to hear their outlooks on economic growth and government spending.
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The overall stock market remains undervalued compared to Morningstar's fair value estimates after the October decline. The utility and value sectors look most attractive.
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Mid and small cap stocks are most undervalued but may see volatility as economic growth slows over the next few quarters.
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Sekera's stock picks include utilities American Electric Power and Alliant Energy and real estate stocks Healthpeak Properties and Equity Residential for their discounts and high dividend yields.