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Investing Insights

Gain From the Weight-Loss Trend With These Stocks

Investing Insights

Morningstar, Ivanna Hampton, Sarah Hansen

Bonds, Stocks, Analysis, Advice, Trading, Funds, News, Investment, Morningstar, Entrepreneurship, Mutual, Ideas, Etfs, Finance, Investing, Business, Economic, Independent, Christine Benz

4.2539 Ratings

🗓️ 9 June 2023

⏱️ 20 minutes

🧾️ Download transcript

Summary

High interest rates mean yields everywhere are up – what to do with that extra income? And why Morningstar is cautious on HP stock but considers Salesforce a top pick.

Transcript

Click on a timestamp to play from that location

0:00.0

It's raining income for retirees. What should you do with all this extra yield?

0:05.2

New drugs are driving a weight loss trend. How can investors make money?

0:09.8

And with an impressive quarter behind it, Salesforce remains a top pick. We'll tell you why. This is Investing Insights.

0:26.7

Welcome to Investing Insights. I'm your host, Ruth Saldana. Let's get started with a look at your Morning Star headlines. Salesforce posted an impressive quarter. The cloud-based software

0:33.5

company's revenue and profits came in ahead of Morning Star's expectations. First quarter revenue grew 11% year-over-year to $8.25 billion.

0:43.3

Salesforce's IT automation platform, Mulesoft, international orders, and a more buoyant core business drove the strong performance.

0:51.3

Management also noted most cloud products saw year-over-year growth

0:56.0

of at least 50% in annual recurring revenue. The sales tied to subscriptions or long-term contracts

1:02.8

tend to be more reliable. However, Salesforce's professional services struggled and the overall

1:08.4

demand remains weak. Profitability is a bright spot. The analyst

1:13.2

is predicting them to rise higher next year despite artificial intelligence investments. Morningstar is

1:19.6

sticking with its $245 estimate for Salesforce shares. The stock remains a top pick. Weakening

1:27.1

demand for PCs is weighing on HP.

1:30.2

The tech company's fiscal second quarter revenue fell 22% year-over-year.

1:35.9

Competitors are pressuring HP on price, and a lot of its unsold goods are piling up on the shelves of resellers.

1:43.2

Macro-economic headwinds are still a concern, but HP believes that it is at a turning point.

1:48.9

It plans to reduce inventory backlog, watch costs, and take advantage of better seasonal

1:53.9

buying patterns to bolster its second half results.

1:57.8

Management predicts improved sales in the third quarter.

2:01.4

The firm has narrowed its full year earnings per share range to $3.3 to $3.5.

2:07.5

Morningstar thinks these targets are achievable, but remains cautious of macroeconomic factors

2:12.5

affecting demand.

...

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