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Morningstar's Take on the First Quarter

Our analysis of the first quarter in stocks and funds.

As the first quarter of 2020 comes to a close, Morningstar's analysts have provided in-depth reviews and outlooks across equity sectors and fund categories.


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

Stocks Cheap After First-Quarter Plummet Two thirds of the stocks in our North American coverage are undervalued, trading at 4 or 5 stars.

Quarter-End Markets Summary: From Record Highs to Worst Since ... Here's a list of all the hits.

Utilities: Stock Swoon Opens a Cheap Way to Play Defense Through the Downturn Finally, some buying opportunities in the sector.

Basic Materials Among Most Undervalued Amid Continued Underperformance Compelling opportunities in building materials and agriculture firms, which are less exposed to macroeconomic headwinds.

Downturn Has Put Communication Services Firms on Sale Google's online dominance should be able to withstand any shocks.

Virus, OPEC+ Oversupply Fears Weigh Heavily on Oil Prices, Gouge Energy Stocks Plenty of reason to worry, but we still expect a nearly complete recovery.

Financial Services Is Undervalued Based on Long-Term Fundamentals Berkshire an ideal defensive investment for the long term.

Healthcare Moves Into Undervalued Territory After Pullback Fears of a progressive president and changes to the healthcare system have faded.

Opportunity in Industrial Conglomerates, Aerospace and Defense, and Agricultural Firms Defense contractors could be a smart play in this volatile environment.

Best Values Among Hardest-Hit Real Estate Subsectors Hotel, mall, and healthcare subsectors should rebound strongly once the global crisis is over.

Turbulence Remains, but Value Remains in Consumer Cyclical Eighty percent of the sector is undervalued, trading at 4 or 5 stars.

Consumer Defensive: Uncertainty Creates Attractive Valuations Tobacco and beverage subsectors look particularly attractive.

Opportunities Are Arising in Software and Cybersecurity Compared with the previous quarter, patient investors have some good opportunities.


U.S. Stock Funds Say Goodbye Bull Market, Hello Volatility at Quarter-End Investors grappled with record-breaking volatility in a historic quarter.

How First-Quarter Volatility Hit Foreign Stock Funds Dan Sotiroff looks at performance and how it might have affected your portfolio.

Which Equity Funds Stood Up to the Bear Market? These funds are bloody, but unbowed.

International-Stock Funds Recoil in 2020 International equity markets cratered as the world grappled with the adverse health and economic impacts of the novel coronavirus.

First-Quarter Sell-Off Soon Roils Calm Fixed-Income Market The global pandemic caused fixed-income market volatility not seen since the global financial crisis.

How Have ETFs Fared During This Bear Market? Ben Johnson explains what happened with value and growth and discounts and premiums.

Download the quarter-end data.

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