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33 Undervalued Stocks

Here are our analysts' top ideas in each sector this quarter.

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The S&P 500 staged a remarkable comeback in the second quarter, rising 20% in just three months. We think stocks overall are about fairly valued: The median stock in our North American coverage universe traded at just a 5% discount to our fair value estimate at the end of the second quarter, compared with a 20% discount at the end of the first quarter.

"Of the roughly 800 North American stocks we cover, 34% carry an undervalued rating of 4 or 5 stars," observes Jeffrey Stafford, Morningstar's director of North American equity research, in his latest stock market outlook. "Three months ago, a hefty two thirds of our coverage was undervalued."

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