Our list this week shines a light on international stocks. We sorted our database for large-cap international stocks valued above $50 billion and with a High or Medium-High Argus rating for Financial Strength. We then sorted further, looking for stocks in the group that are furthest from their 52-week high, suggesting value. Timing matters, of course, and stocks have been on a tear lately. We ran the same list a month ago and note some shifting today. Roche Holding was on our initial list, but we have since downgraded it to a HOLD. Novo Nordisk has had tremendous attention from investors, but was not on our previous list as it was hitting new highs -- and has fallen from those highs in the past few weeks. Here is our current list of Argus large-cap BUY-rated international stocks that seem to offer value.

Weekly Tee Up: Walmart and Nvidia

This weekend, in Vegas, it's the Chiefs versus the 49ers. Usher is the halftime show; Tom Brady appears in a commercial; and Taylor Swift fans add a whole new demographic to the fan base. But aside from all that, there is big money at stake. For our list this week, we present possible ways to invest in the Super Bowl.

Global stocks are picking up the pace. While the S&P 500 has jumped almost 11% in the past month, the EAFA index of large- and mid-cap stocks based in countries other than the U.S. and Canada has risen 10%. Over the past six years, the performance gap has been wider, with the S&P 500 advancing 12% compared to a 7% gain for the EAFE. But the underperformance has given global stocks a valuation advantage, particularly in the area of dividends. The EAFE dividend yield of 2.4% is 80 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks now offer opportunity, particularly given the endless speculation over the direction of interest rates in the U.S., which has created market-timing headaches for equity income investors. Those investors have endured recent wide swings in prices for rate-sensitive equity sectors such as Utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection of companies that pay dividends, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus has recently boosted its global coverage, and recommends the following international dividend stocks, each of which has at least a long-term HOLD rating from an Argus analyst.

Stock rose on Thursday on optimism that rate hikes may be over. The Commerce Department said that in September, new orders for U.S. manufactured goods rose 2.8% to $601.5 billion following a 1.0% increase in August. On Friday morning, investors will be looking at the jobs report for October. On the earnings front, Apple reported after the bell. Although the company beat consensus it issued a cautious outlook. The S&P 500 rose 1.9%, the Dow 1.7% and the Nasdaq was up 1.8%. Crude oil rose nearly 1% to $82 per barrel, while gold traded near $1991 per ounce.

Global markets struggle in the new environment of higher interest rates, renewed conflict in the Middle East, and the ongoing battle between Russia and Ukraine. But one thing has not changed: U.S. stocks are more expensive than global stocks on numerous valuation metrics. Consider P/E ratios. The trailing P/E ratio on the S&P 500 is 20, above the global average of 12 and well above the 6-11 average P/Es for emerging markets stocks. A review of yields tells a similar story. The current dividend yield for the S&P 500 is 1.5%, versus the global average of 3.2% and Asian, Australian, and Latin American yields of 4%-8%. The foreign region that does not completely fit the pattern is the Middle East. The average P/E on a Saudi Arabian stock is a high 15.7 and the yield is a low 2.3%. This can be attributed to high oil prices. Taking a step back, one reason investors generally are willing to pay a higher price for North American securities is the transparency of the U.S. financial system as well as the liquidity of U.S. markets. What is more, global returns can be volatile across individual countries, given currency, security, political, and geopolitical risks; indeed, U.S. stocks (ETF SPY) have outperformed EAFE (ETF EFA) year to date -- as well as over the past five years. Even so, we recommend that growth investors have approximately 5%-10% of their equity allocations in international stocks to take advantage of the value, and we have been adding global stocks to our Universe of Coverage.

Monday Tee Up: Will CPI Have a Two- or a Three-Handle?

In this edition, market makes missteps around Google's search; ResMed revs up; industry landscape on consumer packaged goods; and Canfor, LPL Financial, and Boeing.

We don't often see stock-market polls from fellow technicians, but invitees at an event celebrating the 50th anniversary of the Chartered Market Technicians Association in NYC were asked to forecast how the S&P 500 (SPX) would end the year. With the index drifting sideways for the past year, it's not surprising that a majority (55%) expected the index to remain range bound between 3,750 and 4,250 -- which is where we have been for most months going back to 2022. This is one of the basic tenets of technical analysis: the trend is your friend, until it isn't. It also is known as recency bias: what recently happened is expected to continue, as it is the freshest in the mind of most investors. The poll did tilt toward the bullish side, with 31% looking for a move on the SPX to above 4,500, while 11% were bearish.

As global markets struggle in the new environment of sticky inflation and high interest rates, and with the lingering battle between Russia and Ukraine, one thing has not changed: U.S. stocks are more expensive than global stocks on numerous valuation metrics. Consider P/E ratios. The trailing P/E ratio on the S&P 500 is over 20, above the global average of 13 and well above the 11 average for P/Es on stocks in emerging markets. A review of yields tells a similar story. The current dividend yield for the S&P 500 is 1.6%, versus the global average of 3.7% and Asian, Australian and Latin American yields of 4%-12%. The foreign region that does not completely fit the pattern is the Middle East. The average P/E on a Saudi Arabian stock is a high 15.6 and the yield is a low 2.0%. This can be blamed on high oil prices. One reason investors generally are willing to pay a higher price for North American securities is the transparency of the U.S. financial system as well as the liquidity of U.S. markets. What's more, global returns can be volatile across individual countries, given currency, security, political, and geopolitical risks; indeed, U.S. stocks outperformed EAFE in 2022 (as well as over the past five years). Even so, we recommend that growth investors have approximately 5%-10% of their equity allocations in international stocks to take advantage of the value, and we have been adding global stocks to our Universe of Coverage.

There is a large dichotomy between sentiment when the stock market is in a bear market and sentiment when the stock market is in a bull market. For many, this is hard to grasp. But it happens, cycle after cycle.

Global stocks are on a run. While the S&P 500 has jumped almost 8% year-to-date, The EAFA Index of large- and mid-cap stocks based in countries other than the U.S. and Canada has risen 9%. Over the past six months, foreign stocks also have outperformed, climbing 11% versus a 1% decline by the U.S. market. The story is different over the past five years, as the S&P 500 has risen 50% and global stocks have fallen 1%. Even so, the long outperformance has given global stocks a valuation advantage, particularly in the area of dividends. The EAFE dividend yield of 2.7% is 100 basis points higher than the comparable S&P 500 dividend yield. We think global dividend stocks now offer opportunity, particularly given the endless speculation over the direction of interest rates in the U.S., which has created market-timing headaches for equity income investors - who have endured recent wide swings in prices for rate-sensitive equity sectors such as utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S. interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, and, as we have mentioned, higher yields and lower valuations. Argus recently boosted its global coverage, and recommends the following international dividend stocks, each of which has at least a long-term BUY rating from an Argus analyst. This list of approximately 25 companies offers exposure to eight of the 11 major industrial sectors. The list includes companies from 10 countries.

We anticipate that activity in the consumer sector, which was the primary driver of GDP growth in 2022, will slow as the Federal Reserve continues to raise interest rates and companies keep cutting jobs. The sector is all-important to the economy and accounts for about two-thirds of GDP. The main driver to the consumer sector is the jobs market. While the domestic employment environment is in better shape than it was two years ago, it is starting to show signs of deterioration. Though the unemployment rate is 3.5%, it seems headed inevitably higher in the wake of layoff announcements from high-profile companies such as Microsoft, Alphabet, Amazon.com, Salesforce.com, Goldman Sachs, and Morgan Stanley. Meanwhile, consumer balance sheets appear to be weakening somewhat after multiple quarters of spending growth. A combination of pandemic-related factors -- such as economic shutdowns and aggressive fiscal spending -- resulted in a sharp improvement in household finances in 2020. Indeed, the stimulus program initially lifted personal savings to almost $5 trillion. But that money has been spent, and then some: the personal savings level has come down to $625 billion, below the $1 trillion average level in the decade prior to the pandemic. With savings tapped, a slowdown in the all-important consumer sector seems likely in 1H23. Here are some of our top "cautious consumer" stocks for 2023.

Rally in October, Stumble on the Fed: Our Monthly Survey of the Economy, Interest Rates, and Stocks

As global markets stumble along amidst rising inflation and the Russian invasion of Ukraine, one thing has not changed: U.S. stocks are more expensive than most global stocks on numerous valuation metrics. Consider P/E ratios. The P/E ratio on the S&P 500 is 17, above the global average of 12.5 and well above the 6-9 average P/Es for stocks in emerging markets. A review of yields tells a similar story. The current dividend yield for the S&P 500 is 1.8%, versus the global average of 4.5%, and Asian, Australian, and Latin American yields of 7%-11%. The foreign region that does not fit the pattern is the Middle East. The average P/E on a Saudi Arabian stock is a high 19.2 and the yield is a low 1.5%. This can be blamed on high oil prices. Taking a step back, investors generally are willing to pay a higher price for North American securities because of the transparency of the U.S. financial system. What is more, global returns can be volatile across individual countries, given currency, security, political, and geopolitical risks. Indeed, U.S. stocks are outperforming EAFE YTD in 2022 --- as well as over the past five years. Even so, we recommend that growth investors have approximately 5%-10% of their equity allocations in international stocks to take advantage of the value, and we have been adding global stocks to our Universe of Coverage.

Value stocks -- a market segment that includes high-yield stocks -- are outperforming growth stocks in 2022 for the first time since 2016. Indeed, for the past decade, the performance record has favored growth. In nine of the past 10 years, growth stocks have topped value stocks. But the tide may be turning. The rollout of COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and regional banks) that have lagged in recent quarters, and value stocks have kept up the pace with growth stocks in the past year. Now, the Federal Reserve lifting interest rates to fend off inflation, which will likely cap multiple expansion for growth companies. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 2.1%, compared to the 0.8% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Stocks rose modestly on Monday morning, led by the Consumer Staples sector, after recovering from early losses. Chinese economic data was weak, as retail sales and industrial output both fell in July and missed consensus forecasts. On the housing front, the National Association of Home Builders said that its homebuilder sentiment index fell to 49 in August, down from 55 in July and the eighth straight monthly decline. The Dow rose 0.3%, the S&P 0.2%, and the Nasdaq 0.4%. Crude oil fell $3 to $89 per barrel, while gold fell $20 to $1796 per ounce.

Rapidly rising inflation in 2022 has knocked the stock market into a bear market. While growth strategies have suffered the most, value strategies also have declined. Even year-to-date bond prices are lower. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those returns are from eras when the 10-year Treasury bond yield was much higher than the current 3.0% level. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history, indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

In this edition, mainstream oil companies face a dilemma, the travel industry is showing cabin fever, pumped-up gas prices, and Unilever, Capri, and Okta.

Stocks continued to fall sharply on Monday morning amid a range of economic and geopolitical negatives, as investors awaited new inflation data later this week. On the earnings front, Tyson shares rose modestly after the company posted better-than-expected fiscal 2Q results, helped by soaring meat prices, and raised its full-year sales guidance. The Dow fell 1.8%, the S&P 2.7%, and the Nasdaq 3.5%. Crude oil fell more than 4% to $104.50 per barrel, while gold traded near $1862 per ounce.

Markets have faced difficult times before, with challenging economic environments, wars, disease, banking and housing crises, and inflation much worse than we are seeing now, to name but a few. Of late, stock investors had it very good for a very long time -- but now, finding opportunities requires much more work. There is no secret sauce, but there are principals that are worth reviewing: 1) diversify; 2) look for strong management; 3) look for solid balance sheets; 4) do your homework; and 5) adapt. To assemble this week's list, we looked across several sectors that historically are considered to be the most-shielded from high inflation and high interest rates. We then cross-referenced our coverage universe for companies where our analysts recently raised target prices; that have an Argus Financial Strength rating of at least Medium-High; and that pay dividends of least 3%. Some companies also are featured in our model portfolios (Growth & Income, Equity Income, Growth, and Institutional). Here is our list of companies we believe to be recession-proof, all of which are rated BUY at Argus.

Value stocks -- a market segment that includes high-yield stocks -- are outperforming growth stocks in 2022. For the past decade, the performance record has favored growth, but the tide may be turning. The rollout of COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and regional banks) that have lagged in recent quarters, and value stocks have kept up the pace with growth stocks in the past year. Now, the Federal Reserve is poised to lift interest rates to fend off inflation, which will likely cap multiple expansion for growth companies. Regardless, the value sector is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 1.6%, compared to the 0.5% current yield on the iShares Russell 1000 Growth Index ETF. For our High-Yield Theme Model Portfolio, we are seeking stocks with yields of at least 3.0%. This moves us deep into the value segment of the market.

Stocks plunged on Thursday amid rising tensions over Ukraine. Speaking at the United Nations, U.S. Secretary of State Antony Blinken said that he expected Russia to create a pretext for an invasion and to attack Ukraine in the coming days. Meanwhile, Russia continued to assert that it was withdrawing its troops and had no plans to invade. Along with the Ukraine news, investors weighed earnings reports from Walmart and Nvidia and new housing market and employment data. First-time jobless claims rose to 248,000 for the week ended February 12, up from 225,000 a week earlier and above the consensus forecast of 218,000. The Dow fell 1.78%, the S&P 2.12%, and the Nasdaq 2.88%. Crude oil traded near $92 per barrel, while gold jumped $29 to $1900 per ounce.

In 2021, several major corporations announced that they were splitting into pieces, and we don't think the dismantling of conglomerates has run its course. Last year, industrial icon General Electric decided to split into three companies, with one focused on Aerospace, one on Healthcare, and one on Power/Energy. Pharmaceutical titan Johnson & Johnson also announced it is planning to carve off its consumer division and focus just on drugs and devices. These companies, which took generations to build, have abruptly concluded that their best growth opportunities exist for them as smaller, more-nimble, and more-focused companies. Former conglomerate United Technologies blazed this trail in 2020. UTX, now Raytheon Technologies, or RTX, is now three listed firms, with focuses on Aerospace, HVAC and Elevators. This split-up has most favored the HVAC company Carrier Global Holdings Corp. (CARR), which has risen more than 200%. The other businesses are only slightly trailing the broad market. We think investors can benefit from these transactions if they look closely at the resulting companies and focus on the balance sheet, management, and earnings transparency. Companies that potentially fit this theme for 2022 include the following.

The onset of the coronavirus in 2020 knocked stocks into a bear market. Though equities recovered, the U.S. economy is about to slow down and COVID-19 cases are rising again as virus variants spread. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Daily prices can swing wildly, as they did three times in 2021 when stocks dropped 4%-5% in a matter of a few days. Is it time for investors to cash in their chips? We note that investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes, such as fixed income and cash. As well, those returns are from eras when the 10-year Treasury bond yield was not sub-2.0%. So what's a potential equity strategy for investors amid all the uncertainty? Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate. Academic literature and, more to the point, returns history indicate that Min Vol can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

While stocks have fallen since the start of 2022, current insider sentiment remains reassuringly benign. Indeed, the overall Insider Index from Vickers Stock Research is resting at its most-attractive level since November 2020. As expected now that earnings season is in full swing, insider trading volume has dropped from recent robust levels, with only 856 insider transactions meeting the criteria this week for inclusion in Vickers' Weekly Insider Report.

Value stocks are outperforming growth in 2021 (for the first time since 2016), though a recent rally in growth stocks has narrowed the performance advantage for value. But in an environment of historically low interest rates, many investors are still searching for high levels of income, which often can be found in value stocks. During recent years, the performance record has favored growth. Since 2010, the Russell 1000 Growth Index has climbed more than 450%, compared to an advance of 180% for the Russell 1000 Value Index. In eight of the past 10 years, growth stocks have topped value stocks. That hasn't always been the case. In the previous decade, including the Great Recession, value stocks were better performers than growth stocks, advancing an admittedly low 8%, but still better than growth, which declined 15% during the decade. Value investors trace their roots to the famous "Security Analysis" textbook, written by Ben Graham, an economics professor at Columbia University. Warren Buffett was one of his students. The tide may now be turning. Progress on COVID-19 vaccines has given a lift to some of the cyclical companies (energy companies and banks) that have lagged in recent quarters, and value stocks have kept pace with growth stocks in the past year. In any event, value is the place to achieve income. The current yield on the iShares Russell 1000 Value Index ETF is 1.6%, compared to the 0.5% current yield on the iShares Russell 1000 Growth Index ETF. This is important, as the current yield on the 10-year Treasury bond is 1.30%. For our list this week, we have screened our coverage universe for stocks that are BUY-rated by Argus Research analysts, have an Argus Financial Strength rating of at least Medium, and have a yield of 3.0% or higher. New stocks in our portfolio include the following.

Argus Outlook for Growth Sectors

Value stocks are outperforming growth in 2021 for the first time since 2016. While a recent rally in growth stocks has narrowed the performance advantage for value in the year to date, an environment of historically low interest rates is one in which many investors are still searching for high levels of income -- which often can be found in value stocks. When we look for attractive high-yield/deep-value stocks at Argus, we look for low valuations on metrics such as price/earnings, price/sales, price/book, yield, and price/cash flow. We also look for companies with clean balance sheets, high levels of profitability, high-quality earnings, and experienced management teams. We seek to avoid companies in industries that are in secular decline, or with dividend yields that are so high that the payout is clearly at risk. Based on numerous requests from clients, we have designed a portfolio of companies that are BUY-rated at Argus Research, have a Financial Strength rating of at least Medium, and have a yield of 3.0% or higher.

The onset of the coronavirus in 2020 knocked the stock market into a bear market. Though stocks have recovered, the U.S. economy is about to slow down and COVID-19 cases are rising again as virus variants spread. Volatility, which has dropped from the highs of 2020, still has not returned to pre-COVID levels. Daily prices can swing wildly, as they did during two consecutive days in mid-July when the Dow Jones Industrial Average plummeted more than 1,000 points. Yet investors exit the stock market at their own peril, as long-term returns from equities consistently have outpaced long-term returns from other asset classes. Argus believes that Min Vol is an all-weather strategy that is timely in any investing climate and can deliver market-matching returns on an absolute basis and superior returns on a risk-adjusted basis over various time periods.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years. In 2018, the Federal Reserve embarked on an aggressive campaign to raise interest rates, causing Treasury yields to swoop and dive and resulting in a wild ride for supposedly stable U.S. high-income equities. In 2019, the Fed lowered rates in order to restore a normal upward slope in the yield curve. In 2020, global investors, fearing the spread of the coronavirus, pushed rates lower still. Now, in 2021, rates might be headed higher in a few months. The endless speculation over the timing of the Fed's next moves has created market-timing headaches for equity income investors. They have endured wide swings in prices for rate-sensitive equity classes such as Utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase diversity of holdings while reducing sensitivity to the Fed's head fakes on rate policy. Investing in overseas stocks carries its own set of risks, such as currency exchange and even the potential for geopolitical turmoil. But there are also lots of positives in this asset class for U.S. investors, including a wide selection, robust industry diversification, higher yields and lower valuations. Argus has recently boosted its global coverage, adding the following BUY-rated international dividend stocks.

Dividends are supposed to lend stability to a portfolio. However, U.S.-based equity income investors have experienced a high degree of volatility in recent years as the endless speculation over the direction of rates has created market-timing headaches. Investors have endured wide swings in prices for rate-sensitive equity sectors such as utilities, REITs and MLPs. In our view, investing in international income stocks is one way to increase portfolio diversification while reducing sensitivity to volatile U.S interest rates. Investing in overseas stocks carries its own set of risks, including the impact of currency exchange and geopolitical turmoil. But there are also a number of positives in this segment for U.S. investors.

Stocks closed mixed on Thursday as investors digested the Fed's policy decision. Interest rates will remain near zero but 13 of the FOMC's 18 members expect at least one rate hike by the end of 2023. The central bank will continue to purchase at least $120 billion a month in agency mortgage-backed securities and U.S. Treasuries. Yields on the U.S. 10-year Treasury rose to 1.59%, but subsequently slipped to 1.5%. In other news, initial jobless claims rose to 412,000 for the week ended June 12. The Dow fell 0.6%, the S&P was down less than 0.1% and the Nasdaq was up 0.9%. Crude oil traded near $71per barrel, while gold fell $7 to $1774 per ounce.

As global markets are beginning to recover from the impact of COVID-19 and the global recession, one thing has not changed: U.S. stocks are more expensive than global stocks on numerous valuation metrics. The trailing P/E ratio on the S&P 500 is 27.6x, above the global average of 21.2x and well above the 16x average P/E for Chinese stocks. A review of price/sales ratios tells a similar story. The U.S. ratio is 3.0x, far higher than the global average of 1.7x, while Japan and China appear to be values at 1.15x or below. Yields are a slightly different story. The current dividend yield for the S&P 500 is 1.3%, versus the global average of 1.4% and Europe's yields of 2.0%. One reason investors pay a higher price for North American securities is the transparency of the U.S. financial system. What's more, global returns can be volatile across individual countries, given currency, security, and political risks; indeed, U.S. stocks are outperforming EAFE YTD in 2021 (as well as over the past five years). Even so, we recommend that growth investors have approximately 15%-18% of their equity allocations in international stocks in order to take advantage of the value, and we have been adding global stocks to our Universe of Coverage.

As global markets have gyrated due to the spread of COVID-19 and the onset of a global recession, one thing has not changed: U.S. stocks remain more expensive than global stocks on numerous valuation metrics. The trailing P/E ratio on the S&P 500 is 27.4x, above the global average of 21.5x and well above the 19x average P/E for emerging markets and Chinese stocks. The U.S. price/sales ratio is 2.7x, far higher than the global average of 1.7x, while Japan and Europe appear to be values at 1.4x or below. Yields are a slightly different story. The current dividend yield for the S&P 500 is 1.5%, versus the global average of 1.5% and Europe's 2.3%. One reason investors pay a higher price for North American securities is the transparency of the U.S. financial system. As well, global returns can be volatile across individual countries, given currency, security and political risks; indeed, U.S. stocks outperformed EAFE in 2020 and over the past five years. Even so, we recommend that growth investors have about 15%-18% of their equity allocations in international stocks to take advantage of the value.

The nation has been transfixed by the deep freeze across most of the country, the power and water woes in Texas, and the prospects for more storms ahead. Quietly and seemingly in the background, the stock market is showing signs of calming.

Netherlands-based Unilever NV and U.K.-based Unilever PLC operate Unilever Group, a diversified household and personal product (60% of 2018 sales by value) and packaged-food and refreshments (40%) company. The firm's brands include Knorr soups and sauces, Hellmann's mayonnaise, Lipton teas, Axe and Dove skin products, and the TRESemme hair-care brand. The firm has been acquisitive in recent years, and high-profile purchases include the mail-order men's grooming business Dollar Shave Club.