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Stock Strategist

The Market's Most Overvalued Stocks

There's still time to sell these stocks even after the recent market decline.

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After peaking in mid-July, the S&P 500 has lost about 5%. Because our fair value estimates are less volatile than stock prices, we've seen an increase in the number of stocks with 5-star Morningstar Ratings and a corresponding decrease in the number of 1-star stocks among the 1,900 stocks Morningstar covers.

The percentage of stocks trading above our 1-star (Consider Selling) price has fallen from 24% to its current 14%, which represents about 250 companies. In fact, the median stock covered by our equity analysts now trades at a 4% discount relative to our collective fair value estimates. (Click to see our current Market Valuation Graph.)

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