Close Close

33 Undervalued Stock Picks for 2021: Morningstar

Your article was successfully shared with the contacts you provided.

Related: Bob Doll’s 10 Predictions for 2021

U.S. stocks recovered from the selloff in February and March, finishing 2020 with a 16% return, as measured by the S&P 500.

Today, Morningstar considers stocks overvalued, Susan Dziubinski, director of content for, wrote in a blog post this week, noting that the median stock in the firm’s North American coverage universe traded at a 6% premium to the research firm’s fair value estimate at year-end.

According to David Sekera, Morningstar’s chief U.S. market strategist, only 18% of the stocks the firm covers have Morningstar Ratings of 4 or 5 stars.

In aggregate, energy and real estate stocks look undervalued, while the technology sector is the most overvalued.

See the gallery above for 33 specific undervalued stocks across sectors that are among Morningstar analysts’ best ideas, according to Dziubinski.

— Related on ThinkAdvisor: