Financial Services: Best Values in Stocks With Elevated Near-Term Risks
Investors have to be pickier with financial-services stocks this quarter.
The Morningstar U.S. Financial Services Index rose 1% quarter to date through Sept. 24, in line with the market as a whole (Exhibit 1). Overall, the median U.S.-based financial-services stock trades at about a 2% discount to our fair value estimate, so we consider the U.S. financial sector slightly undervalued.
Financials have recovered from the beginning of the year. - source: Morningstar
Michael Wong does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.