Morningstar, Inc. - August 19, 2025
The Biggest Risk Investors Face Today
Plus, new ETFs from Vanguard, and the best AI stocks to buy now.
 Morning DigestAugust 19, 2025 Christine Benz, Susan Dziubinski Plus, whether it’s too late to invest in international stocks, who needs bonds, and what role dividend stocks should play in an investment portfolio. 
ADVERTISEMENT  Editor's Picks  Its long-standing relationship with Wellington enters a new era. Daniel Sotiroff  These stock picks stand to benefit most from developing artificial intelligence technologies. Tori Brovet  There are opportunities to be found among the undervalued stocks of high-quality banks. Tori Brovet Investing Insights NatWest Group and Electronic Arts are among those rated as expensive stocks. Bella Albrecht Caterpillar and ServiceNow are among the stocks that fell into undervalued territory. Bella Albrecht Estate planning attorney Jenny Rozelle discusses which asset types are best for loved ones or charity and when trusts can make sense. Christine Benz Eli Lilly rebounds, all eyes are on Jackson Hole, and the power of diversification. Dan Kemp GE Vernova, McCormick, Xylem, First Solar, and Trane are popular with sustainable investors in mid-cap funds. Frances Aufderheide, Liz Angeles Earnings Season Updates Seagate and Western Digital saw the largest valuation increases. Bella Albrecht Centene and Exact Sciences are among the stocks with the deepest reductions. Bella Albrecht New Stock Analyst Reports Sandisk's (SNDK) fiscal fourth-quarter results beat guidance on the top and bottom lines. Revenue rose 8% year over year and 12% sequentially to $1.9 billion, while non-GAAP gross margin rose 370 basis points sequentially to 26.4%. Management expects sequential sales growth and margin expansion. Sandisk's revenue growth and margin expansion reflect a continued climb out of a downturn in 2023 and 2024. Profit guidance slightly missed our model, due to higher investment in new capacity in fiscal 2026. Growth and growth guidance beat our expectations. Globant's (GLOB) second-quarter results and third-quarter guidance were broadly in line with FactSet consensus, but general business conditions remain weak. Revenue for the third quarter is expected to be essentially flat, and 2025 revenue guidance was trimmed slightly. Globant executed a business optimization plan during the quarter, which reduced headcount by 3%, consolidated its office footprint, and is expected to save $80 million annually. We continue to think the slowdown is cyclical rather than structural. Globant's pipeline reached an all-time high of $3.7 billion in the quarter (reflecting projects delayed), and similar challenges have been reported by peers. New Fund Analyst Reports Baron Small Cap (BSCFX) benefits from a veteran manager and a patient approach. Manager Cliff Greenberg has been a staple at Baron Capital. He has led this strategy since its 1997 inception. Recent results have continued to impress, thanks to solid stock-picking in the industrials and consumer discretionary sectors. The Tools You Need to Invest Like an Analyst Stay connected:
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