Morningstar's Take on the Third Quarter
Our analysis of the third quarter in stocks and funds.
Quarter-End Insights
As the third quarter of 2019 comes to a close, Morningstar's analysts have provided in-depth reviews and outlooks across equity sectors and fund categories.
Equities
Stock Market Outlook: Energy Sector Again Looks Undervalued
U.S. and Canadian stocks are fairly valued overall, with energy offering the most opportunity and utilities the least.
Communication Services: Sector Continues to Outperform
We see little strategic reason for AT&T to combine wireless and media businesses.
Industrials: Sector Fairly Valued Overall, but Industrial Distributors Look Compelling
Industrials has outperformed despite signs of an economic slowdown and fears over tariffs.
Real Estate: Strong Performance as Investors Seek Income Amid Falling Rates Opportunities in real estate live in the mall and hotel REITs.
Healthcare: Political Uncertainties Have Weighed on the Sector
We see opportunities in providers, managed care, drugs, and biotech.
Technology: Sector Looks More Expensive Than at the Beginning of 2019
Opportunities now most common in software and online media.
Utilities: Surging Sector Could Keep Its Rally Going
If interest rates keep heading toward zero, utilities could benefit.
Basic Materials: Amid Trade Tensions, We See Several Opportunities
Agriculture, uranium, and lithium stocks look particularly appealing.
Consumer Cyclical: Regulatory and Economic Uncertainty Leads to Opportunity
For patient investors, an attractive industry is travel and leisure.
Consumer Defensive: Strong Growth Leaves Few Values
Shifting consumer health trends are having a big impact on the sector.
Energy: Opportunities Remain Following Saudi-Related Oil Volatility
Oilfield-services stocks look particularly attractive, trading at levels we haven't seen in some time.
Financial Services: Best Values in Stocks With Elevated Near-Term Risks
Investors have to be pickier with financial-services stocks this quarter.
33 Undervalued Stocks
Here are our analysts' top ideas in each sector at the third quarter’s end.
Funds
Third Quarter in U.S. Stock Funds--A Mixed Bag
Investors remained cautiously optimistic despite looming threats and rocky markets.
A Tepid Third Quarter for Non-U.S. Stock Funds
Non-U.S. stocks lagged U.S. equities again.
Third-Quarter Performance in 3 Charts
Bonds
Strong Third-Quarter Returns in Fixed-Income Market
Dave Sekera explains the quarter in bonds.
Central Banks Had Strong Medicine for Sniffling Markets in the Third Quarter
Economic and political uncertainty headlined the fixed-income markets.
