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33 Undervalued Stocks for the Second Quarter

Here are our analysts' top ideas in each sector for the coming quarter.

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U.S. stocks finished the first quarter of 2021 with a 5.6% return, as measured by the Morningstar US Market Index. We think stocks are slightly overpriced today: The median stock in our North American coverage universe trades at a 3% premium to our fair value estimate.

Only 14% of the stocks we cover have Morningstar Ratings of 4 or 5 stars, observes Dave Sekera, Morningstar's chief U.S. market strategist, in his latest stock market outlook. In aggregate, the energy, utilities, and communications sectors look undervalued; the basic-materials and industrials sectors, meanwhile, are the most overvalued.

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