Morningstar Runs the Numbers

We take a numerical look through this week's Morningstar research. Plus, our most popular articles and videos for the week ended Jan. 27.

Securities in This Article
Dodge & Cox Income Fund Class I
(DODIX)
Qualcomm Inc
(QCOM)
Visa Inc Class A
(V)
Amgen Inc
(AMGN)
Vanguard Real Estate Index Fund ETF Shares
(VNQ)

This article mentions funds that have an issuer-initiated rating and/or track a Morningstar Index. For full disclosure information, please refer to the specific funds, which are demarcated with a * symbol, listed below.

Inspired by Harper's Index (with a tip of the hat to FiveThirtyEight's Significant Digits blog), Morningstar Runs the Numbers uses a numbers-based approach to highlight recent Morningstar research, along with some outside news stories.

20,000 The Dow Jones Industrial Average crossed the 20,000 level for the first time Wednesday, which left many investors wondering if this is a sign that the bull market is nearing its end, or if stocks have become significantly overvalued. Though Morningstar.com editor Jeremy Glaser says a correction or a bear market is not impossible, he believes stocks are trading at only slightly above their fair value estimates on the whole, and that there are some values out there, even among Dow components.

$30 billion

On Thursday, it was announced that Actelion had agreed to be purchased by

.

"With the deal expected to close in the second quarter, we are lowering our J&J fair value estimate from $112 to $108 due to the overpayment for the acquisition. The deal is priced at roughly 10 times our 2019 Actelion sales estimate of almost $3 billion, which seems difficult to justify without confidence that this growth is sustainable in the long run."

Jan. 28 Jan. 28 marks the first day of Lunar New Year. According to the Chinese calendar, 2017 is the Year of the Rooster.

4 Morningstar awarded its fund manager of the year awards in four categories: domestic stock, fixed income, international stock, and allocation and alternatives. Laura Lutton, director of manager research in North America, revealed the winners in this article, along with the prerequisites for consideration.

"To be nominated for Fund Manager of the Year, the manager's mutual fund must be among the 1,200 that receive Morningstar Analyst Ratings and earn a rating of Gold, Silver, or Bronze. The medal rating indicates that our analysts believe a fund will outperform its category peers and/or benchmark on a risk-adjusted basis over the long haul."

5 days Our weeklong Guide to Saving for Retirement featured in-depth articles and videos that walk readers through key decision points to ensure their portfolio is poised to help them amass the wealth they will need for retirement.

4%

On Friday,

"We think sales will continue to tilt toward cloud-based, moat-bearing products and services, and we will maintain our wide moat rating for Microsoft. We are raising our fair value estimate to $68 per share from $63 previously as we expect faster adoption of Microsoft's cloud products and ramping profitability, though shares look close to full value today."

3%

"There is no change to our $66 fair value estimate. Our 10-year forecast, calling for 10% average annual revenue growth and consolidated operating margins of 24%, remains intact, and we believe the market price offers an attractive entry point for one of the most dynamic growth stories in the consumer space."

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