28 Undervalued Stocks
Though the market is slightly overvalued, our analysts are finding pockets of opportunity.
Despite tepid performance during the first six months of the year, the Morningstar Global Markets Index was up more than 4% for the year to date through September, thanks largely to a decent third-quarter showing. Our equity coverage universe of about 1,500 stocks ended the quarter slightly overvalued, trading at a 4.5% premium to fair value on a capitalization-weighted basis.
On a sector level, communications services looks cheap, trading at a 13% discount, notes Morningstar director of North American equity research Dan Rohr in his quarterly wrap. Meanwhile, technology and healthcare now rank among the priciest sectors, trading at 8.0% and 6.4% premiums, respectively.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.