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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.

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