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2 Undervalued Stocks in an Overvalued Market

Our analysts think the market is overlooking these names.

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By Morningstar's estimate, the market is overvalued today. But that doesn't mean bargains can't be found. Here are two undervalued ideas our analysts are excited about.

The first is BioMarin Pharmaceutical. We think the market has overreacted to the delayed launch of the firm's hemophilia A gene therapy. We think data supports the drug's safety and efficacy, and we expect the drug to launch in 2022 rather than in 2020. In addition, the parent's orphan-drug portfolio and strong late-stage pipeline continue to support a narrow economic moat rating. Lastly, BioMarin is far ahead of its competitors in developing a drug for treating achondroplasia, which has no approved treatments.

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