The Morning Filter 3 Overvalued Stocks to Take Profits In and 3 Undervalued Stocks to Buy Instead
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May 4, 2026 They debate how the Iran conflict, oil supply and AI are reshaping markets. They parse GDP drivers and what the Fed’s stance means for rates. They flag big tech earnings, AI-related capital spending, and which large names look attractive. They name three stocks to take profits in and three undervalued names to consider buying instead.
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Meta Boosts Engagement But Volume Comes With Big CapEx
- Meta grew revenue and engagement via AI-driven ad/content recommendations but margins contracted due to higher AI expenses and much higher CapEx guidance.
- Market is cautious given Meta's prior big CapEx missteps, Morningstar holds fair value at $850.
Start Small In Amazon And Dollar Cost Add On Dips
- For long-term investors, consider starting a small Amazon position but keep dry powder to add if valuation dips back into four-star territory.
- Morningstar raised fair value to $280, leaving Amazon roughly on par with intrinsic value.
Apple Shows Strong iPhone Margins But Remains A Hold
- Apple reported 17% revenue growth, record gross margin ~49.3%, strong China iPhone demand, and Morningstar raised fair value to $270.
- Dave views Apple as a steady three-star hold, not an immediate buy for new positions.