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