Skip to Content
Our Picks

33 Undervalued Stocks for 2021

Here are our analysts' top ideas in each sector for the new year.

Mentioned: , , , , , , , , ,

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.

To view this article, become a Morningstar Basic member.

Register for Free

Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.