2 Stocks to Buy, 2 to Sell

THE MONEY IDEA💡
2 Stocks to Buy, 2 to Sell

Welcome, we are 30,254 Money Masters and counting!

In a market full of mixed signals, knowing where to focus matters more than ever. With insights from Morningstar experts, we identified two undervalued stocks with long-term potential and two that appear overhyped and overpriced. Whether you are rebalancing or looking for fresh ideas, these picks can help sharpen your strategy. For deeper investing insights, see The Money Path. 

Let’s dive in.

THE MONEY IDEA💡
2 Stocks to Buy

Americold Realty Trust (NYSE: COLD) – Cold Storage REIT at a Deep Discount

Industry: Real Estate / Specialty REIT
Current Status: Deeply Undervalued; 5-star rating, no moat, medium uncertainty

• Rare Discount – Shares trade at a 44% discount to fair value despite industry leadership.

• High Yield – Offers a 5.4% dividend backed by steady long-term demand for cold storage.

• Duopoly Position – Alongside Lineage Logistics, controls nearly half the North American market.

• Short-Term Pain – Sluggish food production and inflation pressured results, but these struggles are cyclical.

• Operational Recovery Likely – Valuation implies a pessimistic future that may be overly harsh.

Bottom Line: Americold’s fundamentals remain solid, making this an attractive REIT for value and income investors.

Bristol-Myers Squibb (NYSE: BMY) – Dividend-Rich Pharma with Pipeline Strength

Industry: Healthcare / Pharmaceuticals
Current Status: Undervalued; 4-star rating, wide moat, medium uncertainty

• Compelling Value – Shares are trading at a 27% discount, offering a PE under 8x 2025 earnings.

• Attractive Yield – Pays a 5.1% dividend, with stable cash flow backing long-term payouts.

• Patent Transition Built In – Revenue decline is expected, but new drugs are projected to cushion the fall.

• Pipeline Potential – Market may be underestimating the value of Bristol’s next-gen treatments.

• Analyst Conviction – Morningstar sees this as a misunderstood opportunity amid broader healthcare weakness.

Bottom Line: Despite temporary headwinds, BMY offers value, income, and innovation—all at a discount.

THE MONEY IDEA💡
2 Stocks to Sell

Broadcom (NASDAQ: AVGO) – Chip Giant Priced for Perfection

Industry: Semiconductors
Current Status: Overvalued; 2-star rating, wide moat, medium uncertainty

• Valuation Concerns – Up 58% since April lows, now trading above Morningstar’s fair value estimate.

• Strong Execution, But – Earnings were solid, but market may have already priced in best-case scenarios.

• High Expectations – Minimal room for error with current premium.

• Short-Term Pullback – Shares dipped post-earnings, possibly signaling cooling sentiment.

• Great Company, Wrong Entry Point – The fundamentals are good, but the stock is stretched.

Bottom Line: Broadcom is a long-term leader, but investors may want to wait for a better price.

Roblox (NYSE: RBLX) – Popular Platform, Overpriced Stock

Industry: Interactive Media
Current Status: Overvalued; 1-star rating, no moat, high uncertainty

• Soaring Valuation – Trading at a 113% premium to fair value with no earnings until 2028.

• Heavy Churn – Aging player base means user turnover remains a major business risk.

• Future Growth Needed Now – Requires flawless execution to justify today’s price.

• Unprofitable for Years – GAAP operating margins aren’t expected to turn positive for several more years.

• Speculative Bet – More of a story stock than a value investment.

Bottom Line: Roblox has momentum, but not enough fundamentals to support its price.

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Margentum

Margentum: A Money Masters Project

Launched in December 2024, Margentum is a digital asset inspired by silver and created by the same team behind the Money Masters newsletter.

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