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

The US stock market ended the first quarter of 2024 up over 10%, with stocks appearing fairly valued for the second quarter based on Morningstar metrics. Chief US market strategist David Sekera advises investors to look for undervalued opportunities in underperforming sectors like small value stocks.

Morningstar listed 33 undervalued stock picks for Q2 2024, including Adobe, Comcast, and Tyson Foods. Sectors like industrials, technology, and financial services appear overvalued, while real estate, utilities, and communication services are undervalued. By company advantages, Wide-Moat stocks are overvalued while Narrow- and No-Moat stocks are fairly valued.

Basic materials stocks are mostly undervalued, while communications services, consumer cyclical, and consumer defensive sectors show varied valuations. Energy stocks are slightly undervalued, and financial services are overvalued. Healthcare and technology sectors also feature both overvalued and undervalued stocks. Utilities stocks are undervalued by 7%. Opportunities exist for investors to find undervalued stocks based on various metrics like price/earnings or price/cash flow ratios. Morningstar ratings indicate undervalued, fairly valued, and overvalued stocks.



Read more at Morningstar: Stars & Stripes: 33 Undervalued US Stocks