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Morningstar Insights: 3 Stocks Top Managers Are Selling

Susan Dziubinski, investment specialist with more than 30 years of experience at Morningstar covering stocks, funds, and portfolios gives an insight on Meta Platforms Inc (META), The Home Depot Inc (HD), and Comcast Corp (CMCSA) that form part of Morningstar’s Ultimate Stock-Pickers that sold last quarter.

Each quarter, we take a look at the recent transactions of some of the top money managers around—who we call our Ultimate Stock-Pickers.

Today, we’re taking a look at three stocks that several of our Ultimate Stock-Pickers sold last quarter.

3 Stocks Top Managers Are Selling

These stocks are being sold by top managers. Data as of Dec. 15, 2022.

1. Comcast CMCSA

2. Meta Platforms META

3. Home Depot HD

Nine of our 26 Ultimate Stock-Pickers scaled back in Comcast last quarter. The stock has had a tough year, losing roughly 25% in the third quarter alone. Growth has slowed at Comcast, and Morningstar thinks that the days of mid-single-digit broadband growth are behind us. However the company has great cash flow that has been returned to shareholders through buybacks and dividends, thereby increasing shareholder value. We think Comcast stock is significantly undervalued; we think shares are worth $60 each.

Eight managers trimmed Meta Platforms last quarter. Meta stock has plummeted more than 60% this year. The largest social network in the world has faced headwinds in 2022, including a strong dollar, economic uncertainty, a change in Apple’s data privacy policies, and possible fines for not complying with European privacy rules. The stock is trading well below Morningstar’s $260 fair value estimate.

And seven of our Ultimate Stock-Pickers pulled back on Home Depot last quarter. The world’s largest home improvement specialty retailer has had a good 2022, benefiting from healthy long-term housing dynamics and improvements in its merchandising and distribution network. We think Home Depot stock is worth $270 per share, and shares are trading well above that today.

Morningstar director Mike Hodel, strategist Eric Compton, senior analysts Jaime Katz and Ali Mogharabi, and associate analysts Ari Felhandler and Verushka Shetty provided the research behind this segment.


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The opinions, information, data, and analyses presented herein do not constitute investment advice; are provided as of the date written; and are subject to change without notice. Every effort has been made to ensure the accuracy of the information provided, but Morningstar makes no warranty, express or implied regarding such information. The information presented herein will be deemed to be superseded by any subsequent versions of this document. Except as otherwise required by law, Morningstar, Inc or its subsidiaries shall not be responsible for any trading decisions, damages or losses resulting from, or related to, the information, data, analyses or opinions or their use. Past performance is not a guide to future returns. The value of investments may go down as well as up and an investor may not get back the amount invested. Reference to any specific security is not a recommendation to buy or sell that security. It is important to note that investments in securities involve risk, including as a result of market and general economic conditions, and will not always be profitable. Indexes are unmanaged and not available for direct investment.

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