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Quarter-End Insights

Our Outlook for the Market

The market looks increasingly dear, but bargains can still be had.

The market looks increasingly dear to us today, after rising roughly 5% since our last quarterly review. That increase has run a little ahead of the mixed, but generally upward revisions to our earnings projections and fair value estimates. However, we still see attractive values in individual industries and firms and, in particular, among  wide-moat companies. That's the basic message in our latest quarterly review.

Morningstar equity analysts cover about 1,700 companies, and we develop sector and overall market outlooks on a quarterly basis. One way to get a read on our collective take is with Morningstar.com's market fair value graph. This tool tracks the median price/fair value ratio of our coverage universe over time and allows you to drill down to see our assessments across moat, uncertainty, sector, and industry categories. You can couple that with our in-depth sector discussions below, which include a review of the individual stocks our equity research teams have identified as some of the best values in the market right now.