33 Undervalued Stocks for 2021
Here are our analysts' top ideas in each sector for the new year.
Our Picks
Mentioned: VMware Inc (VMW)
, Splunk Inc (SPLK)
, Facebook Inc (FB)
, Twitter Inc (TWTR)
, Snap Inc (SNAP)
, Fox Corp (FOXA)
, Pinterest Inc (PINS)
, Lockheed Martin Corp (LMT)
, American Electric Power Co Inc (AEP)
, Kellogg Co (K)
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.