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3 Market Segments We Like, and How to Invest in Them

Bargain-seekers might want to consider the energy and financial-services sectors along with the large-value category.

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The market's strong opening to 2012--with the S&P 500 up more than 9% since the calendar turned--has caused some investors to wonder whether stocks are no longer attractively priced. But even investors worried that the market has nowhere to go but down might find opportunity in sectors and fund categories that still appear undervalued, if not quite as enticing as they were during last fall's market correction. 

Using market fair value sector estimates made by Morningstar's equity analyst team and the  ETF Valuation Quickrank tool, which uses those same estimates and applies them to exchange-traded funds, we looked for high-quality stocks, ETFs, and mutual funds focused on attractively valued areas of the market. Here are a few of the areas we found, with investment ideas for each.

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