Category: 3. Business

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First Quantum Minerals (TSX:FM) has quietly pushed higher again, with the stock up about 5% over the past week and roughly 13% this month, inviting a closer look at what is driving sentiment.

See our latest analysis for First Quantum Minerals.

Seen against its roughly 35% 3 month share price return and a 1 year total shareholder return of about 63%, this latest move suggests momentum is rebuilding as investors reassess copper exposure and earnings risk.

If this miner’s run has you rethinking your watchlist, it could be a good moment to scout other cyclical opportunities like auto manufacturers.

With profits rebounding, strong revenue growth, and shares still trading at a sizable intrinsic discount, the key question now is simple: Is First Quantum undervalued, or is the market already pricing in its next leg of growth?

On a price-to-sales ratio of roughly 4x at the last close of CA$33.31, First Quantum still screens as undervalued against both its own fundamentals and peers.

The price-to-sales multiple compares the company’s market value to the revenue it generates, a useful lens for miners where earnings can swing sharply with commodity cycles and one off items. For a business that has only recently returned to profitability yet is delivering strong top line growth, a sales-based valuation helps smooth out short term profit noise.

Relative to similar metals and mining names, First Quantum’s 4x sales multiple looks restrained, with the Canadian industry closer to 6.4x and the peer average around 4.1x. Our fair price-to-sales estimate of 4.4x suggests there could be further room for the share price to move higher if the market comes to fully reflect its growth profile.

Explore the SWS fair ratio for First Quantum Minerals

Result: Price-to-Sales of 4x (UNDERVALUED)

However, political uncertainty around key assets and volatile copper prices could quickly compress margins, challenging expectations for continued re-rating and rapid earnings growth.

Find out about the key risks to this First Quantum Minerals narrative.

While the price to sales ratio hints at mild undervaluation, our DCF model is far more aggressive and suggests First Quantum trades about 65% below its fair value of roughly CA$93.85. If that long term cash flow story is accurate, today’s price may represent a pause rather than a completed move.

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out First Quantum Minerals for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 907 undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you would rather rely on your own analysis than ours, you can review the numbers, develop your thesis, and get started in under three minutes, Do it your way.

A great starting point for your First Quantum Minerals research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.

Before the market moves on without you, put your research momentum to work and line up your next potential winners using focused, data driven screeners.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include FM.TO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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It is a hacker’s dream. Even in the face of repeated warnings to protect online accounts, a new study reveals that “admin” is the most commonly used password in the UK.

The second most popular, “123456”, is also unlikely to keep hackers at bay.

The annual review of the top 200 most common passwords by the tech company NordPass makes depressing reading for security experts, the police and anti-fraud bodies.

Although cybersecurity experts keep repeating that simple passwords are extremely easy to guess, these warnings are going unheeded.

In the UK, words, number combinations, and common keyboard patterns dominate the top 20. Different variations of the word “password” take up as many as five of these spots, with simple numeric combinations, including “12345678” and then “123456789” using another five. So far, so easy to hack.

It’s not just a problem here – Australians, Americans and Germans also use “admin” more than any other password when accessing websites, apps and logging in to their computers. Around the world, “123456” emerges as the most popular.

“Despite all efforts in cybersecurity education and digital awareness over the years, data reveals only minor improvements in password hygiene,” says Karolis Arbaciauskas of NordPass, a password manager that aims to keep details secure.

“About 80% of data breaches are caused by compromised, weak, and reused passwords, and criminals will intensify their attacks as much as they can until they reach an obstacle they can’t overcome.”

What the scam looks like

At a time when many of us grapple with a growing number of passwords, it seems people are picking the easy option. Criminals are well aware of this and will use the obvious options during a systematic attack on someone’s accounts.

“The problem with easy-to-remember passwords is that most of them can be cracked or guessed in seconds using a technique called a ‘dictionary attack’ – a systematic method of guessing a password by trying many common words and their simple variations,” Arbaciauskas says.

“Another problem is that people tend to reuse them quite often. Users cite having too many accounts to create, and remember, unique passwords for all of them. That is terrible. People who use weak passwords, or reuse them, risk their digital lives and their identities.”

Recent research from Virgin Media O2 suggests four out of every five people use the same, or nearly identical, passwords on online accounts, giving an almost open door for hackers to compromise log-ins.

You might be alerted to an attack by a message advising that you have been trying to change your email address, or other details, connected to an account.

What to do

Make your passwords long and strong. This could be by combining three random words (eg, applepenbiro) or mixing numbers, letters and special characters.

Don’t reuse the same password. The rule of thumb is that each account should have a unique password because if one account gets broken into, hackers can use the same credentials for other accounts.

Change any passwords that are variations on the same word now, starting with the important sets of accounts: banks, email, work and mobile.

Use password managers – these are often integrated into web browsers. Apple has iCloud Keychain, while Android phones have Google Password Manager, both of which can generate and save complicated passwords.

Two-factor authentication (2FA) is something you can set up for your email, and other important online accounts, to add an extra layer of security. It involves providing something that only you can access – for example, a code sent to you by text message. You should turn 2FA on for every service that offers it.

Spotify Technology (SPOT) just kicked off its 2025 Wrapped campaign, turning year end listening habits into a global event that now includes real time social features like Wrapped Party and offline pop up experiences.

See our latest analysis for Spotify Technology.

All of this lands while investors are processing bigger shifts, from Spotify’s push into video and AI driven efficiency to Daniel Ek’s planned move to executive chairman. The 23.4% year to date share price return and three year total shareholder return of 622.7% suggest longer term momentum remains intact despite a softer recent patch.

If Spotify’s Wrapped has you thinking about what else is shaping digital media, it could be a good time to scan other high growth tech and AI stocks that are gaining traction.

With revenue and profits inflecting higher, a lower than industry P E multiple, and a double digit discount to analyst targets, is Spotify still misunderstood by the market or are investors already paying up for years of future growth?

According to MichaelP, the narrative fair value for Spotify sits well above the last close, framing today’s price as a potential long term entry point.

The market’s obsession with short term results over long term results is what led many investors to misunderstand Amazon, Netflix and many others in their early days, and the same is true with Spotify. You’d hear investors say: “Yeah, but you aren’t profitable?”. Those companies were playing the long game while those investors who only looked a few quarters out missed the boat of companies that had great qualitative metrics that weren’t yet evident in traditional quantitative financial metrics.

Read the complete narrative.

Curious how this story gets to a much higher valuation from here? The secret mix: rapid earnings expansion, fuller margins, and a punchy future multiple. Want the full blueprint?

Result: Fair Value of $703.12 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, sustained underperformance in ads or rivals chipping away at Spotify’s market share could delay margin expansion and challenge today’s undervaluation thesis.

Find out about the key risks to this Spotify Technology narrative.

Step away from narrative fair value and the current earnings multiple tells a tougher story. Spotify trades at about 71 times earnings, roughly triple the US Entertainment sector at 22 times and more than double its own fair ratio of 34.7 times. This implies far less margin for error if growth slows or sentiment turns.

See what the numbers say about this price — find out in our valuation breakdown.

If you see the numbers differently or want to stress test your own thesis, you can build a personalized Spotify story in just minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Spotify Technology.

Before you log off, you could turn this momentum into action by scanning fresh stock ideas on Simply Wall Street’s Screener so you are not sidelined on the next opportunity.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SPOT.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Aptiv (APTV) has quietly slipped over the past month, with the stock down almost 9% even as its year to date return still sits solidly positive. That change may present an interesting potential entry point for some investors.

See our latest analysis for Aptiv.

That pullback sits against a much stronger backdrop, with a year to date share price return of 26.65% and a 1 year total shareholder return of 34.76%. This suggests momentum has cooled recently, while the broader trend still looks constructive.

If Aptiv has caught your eye, it can also be worth seeing how other auto suppliers are trading right now by scanning auto manufacturers for fresh ideas.

With shares pulling back despite double digit annual gains and trading at a hefty discount to analyst targets, investors now face a key question: is Aptiv undervalued or is the market already pricing in its future growth?

With Aptiv last closing at $76.37 versus a narrative fair value of $98.24, the story points to meaningful upside if its transformation plays out.

Spin off of the Electrical Distribution Systems (EDS) business and continued execution on footprint optimization/cost structure initiatives are expected to unlock shareholder value, create balance sheet flexibility, and allow for greater strategic focus on software and high growth advanced electronics areas, with positive impact on net margins and long term earnings growth.

Read the complete narrative.

Want to see what kind of revenue runway, margin lift, and future earnings multiple are baked into that upside case? The projections behind this fair value lean heavily on accelerating profit growth, rising software like economics, and a leaner post spin business mix. Curious how those moving parts combine into that target price and what has to go right along the way?

Result: Fair Value of $98.24 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, that upside depends on resilient auto demand and a smooth EDS separation, as macro softness or execution missteps could easily derail the profitability narrative.

Find out about the key risks to this Aptiv narrative.

Step away from the narrative of fair value and the picture looks less forgiving. On a price-to-earnings basis, Aptiv trades at 55.9 times, well above the Auto Components industry at 18.7 times, the peer average at 26.6 times, and even its own 46.7 times fair ratio. Is the market already front loading too much optimism?

See what the numbers say about this price — find out in our valuation breakdown.

If you see this differently, or would rather dive into the numbers yourself, you can shape a personalized view in just minutes by using Do it your way.

A great starting point for your Aptiv research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.

Before you move on, lock in your next potential opportunity by using the Simply Wall Street Screener to uncover focused ideas that match your strategy.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include APTV.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Earlier this week, Morningstar, Inc. announced a 10% increase in its quarterly dividend to US$0.50 per share, payable on January 30, 2026, and unveiled major updates to its Morningstar Medalist Rating methodology scheduled to roll out globally in April 2026.

• The combination of a higher cash payout and a more transparent, fee-sensitive rating framework underscores Morningstar’s focus on both shareholder returns and improving how investors evaluate managed funds.

• Against this backdrop, we’ll explore how the enhanced dividend and revamped Medalist Rating reshape Morningstar’s investment narrative for long-term investors.

Find companies with promising cash flow potential yet trading below their fair value.

To own Morningstar, you need to believe in the durability of its data and ratings franchises, where sticky subscription revenue and high returns on equity support a premium valuation despite slower forecast growth than the wider market. The 10% dividend bump to US$0.50 per share reinforces that cash generation remains healthy even after a bruising share price pullback and margin pressures over the past year, but it does not fundamentally change the near term story. The more meaningful catalyst is the overhaul of the Morningstar Medalist Rating in April 2026, which could deepen client reliance on Morningstar’s analytics if investors embrace the clearer fee and manager experience signals, or invite scrutiny if outcomes disappoint. That tension sits alongside existing risks around high expectations, rising costs and a relatively new management team.

Morningstar’s shares are on the way up, but could they be overextended? Uncover how much higher they are than fair value.

Eight fair value estimates from the Simply Wall St Community span roughly US$90 to a very large upper bound, showing how far apart individual views can be. Set against that, the coming Medalist methodology shift and Morningstar’s still elevated earnings multiple give you plenty of reasons to compare several perspectives before deciding what the business might realistically deliver.

Explore 8 other fair value estimates on Morningstar – why the stock might be worth over 2x more than the current price!

Disagree with this assessment? Create your own narrative in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Morningstar research is our analysis highlighting 4 key rewards that could impact your investment decision.

• Our free Morningstar research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Morningstar’s overall financial health at a glance.

Right now could be the best entry point. These picks are fresh from our daily scans. Don’t delay:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include MORN.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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