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Quarter-End Insights

Market Outlook: Equity Valuations Look Lofty

It's getting harder to find undervalued stocks with so much optimism factored into stock prices.

  • The Morningstar Global Markets Index has returned more than 11.72% year to date and 18.68% over the past year.
  • The market-cap-weighted price/fair value estimate ratio for our equity analysts' coverage universe is 1.05.
  • Energy is currently the most undervalued sector, with a price/fair value estimate ratio of 0.96. Basic materials remains the most overvalued sector, with a price/fair value estimate ratio of 1.24.