Skip to Content
Quarter-End Insights

Our Outlook for the Market

Five-star picks are more scarce since the market rally, but wide-moat opportunities can still be found.

Mentioned: , ,

We thought the market looked cheap back in March, but it looks closer to fairly valued today. We still see buying opportunities, especially among "wide moat" companies. And we've been raising our fair value estimates, on balance, in recent months. But the market rally since March has considerably closed the wide gap between price and fair value that prevailed during 2008 and into early 2009. "Consider buys" have grown increasingly scarce.

That's the basic message from our bottom-up research on over 2,000 individual companies. We estimate fair values for these firms using discounted cash flow methods, and we regularly track those fair values along with the underlying stock prices. You can do the same with our Market Valuation Graph. It shows the median price to fair value ratio for our whole research coverage. That tool also breaks the data out for NYSE vs. Nasdaq stocks as well as for the companies in our economic moat and uncertainty categories.

Bill Bergman does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.