The sector looks fairly valued overall, but there are still opportunities for selective investors.
Third-quarter results were disappointing, but this wide-moat tech giant remains a firm in transition, writes Morningstar’s Pete Wahlstrom.
Big industry names will be affected by the newly created enterprise's ability to sell fully integrated solutions.
There are a few more options with the sector now slightly undervalued, but given recent market volatility, we favor firms with established economic moats.
While the wide-moat firm's core/legacy businesses remained under significant pressure, its strategic imperatives again outperformed expectations this past quarter.
Mergers and acquisitions are ramping up (as are rumors), but with the sector slightly overvalued, we stick to fundamentals and seek firms with established economic moats.
The wide-moat technology company's high customer switching costs and transition to a cloud-based platform should combine for solid long-term cash flow growth.
We no longer believe that HP's business entities benefit from sustainable competitive advantages.
Given the tech sector's higher recent volatility and overvaluation, we're seeking wider margins of safety and established economic moats.
IBM's investor briefing reveals goal of $40 billion in revenue from key analytics, cloud, and engagement businesses by 2018.
Many of HP's stumbles during the quarter appear to be isolated, but we would seek a wider margin of safety before buying, writes Morningstar's Pete Wahlstrom.
Rather than chase the next highfliers, we gravitate toward tech companies with moats and exposure to growth areas such as social, mobile, and the cloud.
We like wide-moat Intel's long-term positioning, but investors should seek a wider margin of safety before buying, writes Morningstar's Peter Wahlstrom.
The Brazilian telecom conglomerate's shares were down 80% last year, but the company could still benefit from consolidation in the industry and some secular trends.
With these sectors trading above our fair value estimate, investors should seek firms with established economic moats to help them withstand near-term revenue and operating margin volatility. Plus, get our take on Apple Pay's impact and the ongoing wireless spectrum auction.
Despite headwinds, we view IBM as fundamentally undervalued and worthy of a close look from patient investors.
In the early stages of a turnaround, the wide-moat tech giant still faces some headwinds, but we think its shares look fundamentally undervalued.
Content ownership and international expansion secure a wide moat for Discovery, but we're still waiting for a better entry point.
The firm’s move to raise prices and invest in marketing and original content is sound even if it has slowed subscriber growth in the short-term, says Morningstar’s Peter Wahlstrom.
There is value in a breakup, but it won't be transformational.
We believe Hewlett-Packard's decision to split the enterprise and PC/printing businesses is the right move strategically, but there are still several moving parts and details to be finalized.
As enterprises allocate spending toward data analytics, we see increasing complexity leading to opportunities for legacy technology providers and services firms.
With the acquisition of MicroEdge, we see plenty of cross-selling and market-expanding opportunities for the combined entity.
Management is executing well, but investors should wait for a larger margin of safety before diving into HP, says Morningstar’s Pete Wahlstrom.
With volatility creeping back into the market and most technology and telecom names trading at or above fair value, we fall back on our moat methodology
With tech stocks overall trading at a 10% premium to fair value, investors must resist chasing momentum, high-growth names that don't generate positive free cash flow.
Fox's cable networks and film studio are outstanding businesses with long-lasting competitive advantages.
Dividend increase was higher than we expected, says Morningstar's Peter Wahlstrom.
As valuations have run up in tech, we're staying focused on economic moats.
Disney's cornerstone franchises, world-class brand, and Lucasfilm acquisition should bear fruit for the long term, says Morningstar's Peter Wahlstrom.
Greed trumps fear in several pockets of the tech sector, but buying opportunities can still be found.
Investors could still benefit by taking a closer look at some firms with strong positions in mobile computing.
Investors should remain selective amid a generally uninspiring marketplace, while keeping an eye on secular themes.
The U.S. economy is in decent shape, but we are being even more selective given recent outperformance.
Channel diversification, infrastructure investments, and share buybacks should allow consumer cyclicals to see low-double-digit earnings-per-share growth in 2013.
Macro and cyclical headwinds are prevalent, but with consumers still spending and firms cautiously allocating capital, low-single-digit growth is still achievable.
After shedding 36% since March, the post-first-quarter sell-off represents a compelling entry point to this wide-moat firm's stock.
We like this home improvement giant's efficiency overhaul.
Top-line comparisons will become more difficult in the back half of 2012, but margin tailwinds and increased share repurchase activity set the stage for robust earnings growth.
This quiet Midwestern firm would need to do something pretty extreme to impair its brand image, and we're optimistic about the company's growth potential.
Newco gives Barnes & Noble a financially stable partner and provides new opportunities for the Nook and the firms' college e-book presence.
Amid signs of economic stabilization, several yellow caution flags still wave for the consumer cyclical sector.
Slower consumer growth in 2012 is not fully reflected in valuations, and we remain selective and focused on structural winners.
Hope for economic security continues to drive working adults to post-secondary education, says Strayer CEO Rob Silberman.
The long-term outlook is still positive, but near-term headwinds remain.
A look at four companies presenting at the 2011 Management Behind the Moat Conference.
As macro headwinds mount, we would look for a larger valuation discount among consumer cyclical names.
For-profit schools are struggling to fill their classrooms.
Consumer cyclical names with moats are still well-positioned despite macro and inflation pressures.
The home-improvement giant's results reflected solid expense management amid a tough seasonal period.