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Quarter-End Insights

Market Outlook: Lofty Valuations Call for Careful Stock-Picking

Given general valuation levels, careful individual stock selection is more important now.

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  • The Morningstar Global Markets Index has returned more than 6% year to date and 16% over the past year.
  • The market-cap-weighted price/fair value estimate ratio for our equity analysts' coverage universe is 1.06.
  • Healthcare is the most undervalued sector, with a price/fair value estimate ratio of 0.98. Basic materials is the most overvalued sector, with a price/fair value estimate ratio of 1.44.

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