From Morningstar: 2024-04-08 13:47:00

The US stock market closed the first quarter of 2024 with over a 10% increase. Heading into the second quarter, stocks look fairly valued. Morningstar recommends looking for contrarian investment opportunities, especially in undervalued small-value stocks. Here are 33 undervalued stocks to buy for Q2 2024, with detailed sector analysis.

Undervalued basic-materials stocks are trading fairly heading into Q2, with potential opportunities in agriculture and metals and mining industries, as per Morningstar’s Seth Goldstein. Communication-services sector is 6% undervalued, with telecom stocks showing promise. Consumer cyclical and defensive stocks, along with energy stocks, offer investment potential. Financial services are overvalued, but bank stocks show strength.

Healthcare stocks are slightly overvalued, with opportunities in biotech and drug manufacturers. Technology stocks are 8% overvalued, with limited buying opportunities in semiconductors and software. Real estate sector is trading at 11% discount to fair value, offering potential investment opportunities. Utilities stocks are 7% undervalued, with most stocks in buying range.



Read more at Morningstar: 33 Undervalued US Stocks | Morningstar