Morningstar, Inc. - October 22, 2025
The Myth of the Stock-Picker’s Market
Plus: Is It Time for Healthcare Stocks to Rebound?
 Morning DigestOctober 22, 2025 Amy Arnott Investors, be warned: Hope springs eternal, but outperformance is rare. 
ADVERTISEMENT  Editor's Picks  Fed expected to cut rates twice before the end of the year. Gabe Alpert  Assessing their impact on flows to US stock funds. Jeffrey Ptak  The author and advisor to financial advisors discusses some of his favorite money-related sketches, the ‘fake advice industry,’ and how to have better conversations about money. Christine Benz Investing Insights These deeply undervalued stocks without economic moats look attractive today. Susan Dziubinski Disclosures already tell investors a lot—if they look. Brian Moriarty This sector has failed to keep up with the broad US stock market rally. Gregg Wolper Rising demand from wealthy clients seeking investment alternatives is driving more individual investors into the private markets. Alexander Davis Datadog and LPL Financial saw moat upgrades. Frank Lee These 12 undervalued basic materials stocks look attractive today. Tori Brovet Recent Earnings New Stock Analyst Reports Elevance Health's (ELV) third-quarter results included low-double-digit revenue growth and a 30% decline in adjusted EPS. Despite the lower profits, the company is tracking toward management's 2025 guidance, which includes a roughly 10% decline in adjusted EPS. Medical cost trends continued to surge in the quarter, but the 91% medical cost ratio puts Elevance roughly in line to meet its 90% target for the full year. Additionally, the firm's operating cost controls look admirable. However, management foreshadowed that Medicaid operating margins would decline about 125 basis points in 2026, which could constrain earnings for the third year in a row. New Fund Analyst Reports Calvert Income's (CFICX) August 2025 shift to the intermediate core-plus bond Morningstar Category from the corporate-bond peer group has the potential to obscure as much as it clarifies. This strategy isn’t a perfect fit for either. It retains a stronger corporate credit focus than most core-plus rivals, but its increased allocations to noncorporate sectors in recent years—particularly government mortgage-backed securities and asset-backed securities—make the new classification more appropriate. Importantly, the process itself hasn't changed: The portfolio remains geared toward generating income, and corporate credit is often the most natural place to find it. The Tools You Need to Invest Like an Analyst Stay connected:
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