33 Undervalued Stocks for 2021
Here are our analysts' top ideas in each sector for the new year.
Here are our analysts' top ideas in each sector for the new year.
Despite a dramatic sell-off in February and March, U.S. stocks finished 2020 with a remarkable 16% return, as measured by the S&P 500. Not surprisingly, we think stocks are overvalued today: The median stock in our North American coverage universe traded at a 6% premium to our fair value estimate at year's end.
Only 18% of the stocks we cover have Morningstar Ratings of 4 or 5 stars, observes Dave Sekera, Morningstar's chief U.S. market strategist, in his latest stock market outlook. In aggregate, energy and real estate stocks look undervalued; the technology sector, meanwhile, is the most overvalued.
Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.