4 Stocks to Buy Before They Take Off

50 snips

Sep 15, 2025

The potential impacts of the Federal Reserve's interest rate cuts are under scrutiny, with key earnings reports from companies like FedEx and Darden Restaurants on the horizon. Oracle's surprising forecast sparks nostalgia for late-90s tech booms. Small-cap stocks are highlighted as undervalued opportunities in a saturated market. Special guest Bryan Armour shares insights on investing in smaller companies through ETFs. Lastly, the utility and real estate sectors are discussed as attractive options amidst changing economic conditions.

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INSIGHT

Fed Cuts Priced In; Risks If They Don’t Happen

Markets fully price a 25bp Fed cut this week and expect more cuts later in the year.
Dave warns markets would sell off sharply if the Fed fails to deliver the expected 25bp cut.

ADVICE

Listen To Powell’s Labor Versus Inflation Focus

Watch Chair Powell's emphasis on employment versus inflation for market direction.
Expect volatility if Powell signals less dovishness and fewer cuts than markets expect.

ADVICE

Three Earnings To Gauge The Economy

Monitor Lennar, FedEx, and Darden earnings for economic signals and housing demand.
Use Lennar for mortgage-rate sensitivity, FedEx as a real-time economic bellwether, and Darden for consumer spending trends.

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On this week’s episode of The Morning Filter, Dave Sekera and Susan Dziubinski discuss how big the Federal Reserve’s interest cut this week might be and what to listen for in Fed Chair Jerome Powell’s comments. Recent stock pick Lennar LEN reports earnings in the next few days, and Dave explains why he’s watching for results from FedEx FDX and Darden Restaurants DRI this week, too.

Oracle’s ORCL shockingly strong forecast drove investors wild last week but left Dave feeling very late-1990s; tune in to find out exactly what that means. They also unpack earnings results from Adobe ADBE, Chewy CHWY, and several companies viewers and listeners have been asking about.

Small-cap stocks remain an undervalued pocket in a fairly valued market. Special guest Bryan Armour, Morningstar director of ETF and passive strategies research, argues why stock investors would be wise to invest in smaller companies via an ETF and shares several of his picks. And Dave’s stock picks this week are undervalued small-cap stocks to buy before they rally.

Episode highlights:

Is Oracle Stock Worth the Hype?

Lightening Round: Earnings Season Recap

Undervalued Small-Cap ETFs to Consider

Stocks to Buy Before They Rally

Read about topics from this episode.

Read Dave’s stock market outlook: https://www.morningstar.com/markets/stock-market-outlook-where-we-see-investing-opportunities-september

Learn more about Morningstar’s approach to stock investing: Morningstar’s Guide to Investing in Stocks

Read the earnings note for Oracle: https://www.morningstar.com/stocks/oracle-earnings-skyrocketing-ai-data-center-demand-fuels-outlook

Got a question for Dave? Send it to themorningfilter@morningstar.com.

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Viewers who’d like more information about any of the stocks Dave talked about today can visit Morningstar.com for more details. Read more from Susan Dziubinski and Dave Sekera.

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