Morningstar, Inc. - August 20, 2025
Where to Invest When Nothing Looks Cheap
Plus, an unstoppable yield machine?
 Morning DigestAugust 20, 2025 Sarah Hansen Markets are richly valued. Here’s where strategists see opportunities. 
ADVERTISEMENT  Editor's Picks  Will ULTY’s dividend bonanza continue, or is it too good to be true? Amy Arnott  Put these must-own international stocks on your watchlist. Susan Dziubinski  Novo faces tough competition from its main US rival and cheaper copycat obesity drugs. Johanna Englundh Investing Insights Bond, crypto, and international-stock funds flourished for the third consecutive month, with US stock funds in outflows. Drew Carter, Nour Al Twal, Joe Bullard Morningstar’s Guide to Active ETF Due Diligence helps investors separate sound funds from structural duds. Robby Greengold The number of proxy voting proposals with near-zero support continues to increase. Lindsey Stewart It took the worst bond market in history to make investing in a 60/40 more painful during a market crash than holding all equities. Emelia Fredlick Earnings Season Updates These investments bring us closer to a bullish scenario for Intel stock. Brian Colello We plan to raise our fair value estimate and Uncertainty Rating of Home Depot stock. Jaime Katz New Stock Analyst Reports Dayforce (DAY) shares surged Aug. 18 after Bloomberg reported that private equity firm Thoma Bravo is in advanced discussions to acquire the human resource management provider for an unspecified amount. Investors assume the private equity firm will pay a significant acquisition premium. Over the past couple of years, revenue growth for enterprise-focused Dayforce has continued to decelerate. The slower growth has weighed on the company's valuation, and its share performance has underperformed other publicly traded peers year to date. Palo Alto Networks ( PANW) reported solid fiscal fourth-quarter results. The top line grew 16% year over year to $2.5 billion, and adjusted operating margin expanded 300 basis points to 30%. The firm's next-generation security annual recurring revenue expanded 32% to $5.6 billion. We believe Palo Alto's continued strength reflects a broader appetite for security vendor consolidation. The firm's multiproduct portfolio puts it at a clear advantage as it continues to capture security wallet share and sell deeper into existing accounts. New Fund Analyst Reports T. Rowe Price New Asia (PRASX) continues to benefit from a well-defined investment process, but growing concerns over the portfolio manager's stock-picking efficacy and the supporting analyst team's stability have weakened our confidence. We downgrade the strategy's People rating to Average from Above Average, while maintaining the Process rating at Above Average. Fidelity Limited Term Bond's (FDIAX) aggressive profile is poised to continue, but the strategy’s ability to keep risk in check gives it appeal. Investors should be poised for more volatility going forward, given the strategy’s greater bandwidth since early 2024 to hold junk bonds. But a sound process and veteran team continue to make this an attractive option over a market cycle. The Tools You Need to Invest Like an Analyst Stay connected:
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