Where Are Stocks Undervalued?

Even with the market's bounce, the selloff provides a chance to invest in stocks at rarely seen discounts. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=36533&elqTrackId=5954cbac335c4b1f9ed09aa3864f2b05&elq=29f9eee79e1e4653bcdb3dda35a07caa&elqaid=36533&elqat=1&elqCampaignId=17077) [Smart Investor] Smart Investor with [Tom Lauricella, chief markets editor]( Twitter: [@LauricellaTom]( [Tom Lauricella] Who doesn’t love a good bargain? While the stock market isn’t as broadly undervalued as it was just two weeks ago thanks to a roughly 5% bounce from the lows, overall equities offer a chance for long-term investors to put money to work at 10% to 20% off, depending on where you look. There are different ways to take advantage of the opportunities in the market. As our columnist John Rekenthaler [notes in this article]( that puts a pair of Vanguard funds to work, investors can benefit from something as simple as rebalancing stock holdings into a beaten-up growth stock index from a value index. It so happens that growth stocks – such as technology companies – are trading at substantial discounts to what Morningstar’s equity analysts think they are worth. Morningstar’s chief U.S. strategist, David Sekera, pegs that discount at 19%, with the best opportunities among small-company growth stocks. There are also a number of companies that Morningstar deems to have the strongest competitive advantages which are trading well below their estimated worth. For more on where Dave sees opportunities, click the link just below. Also, be sure to scroll down to our Chart of the Week article, which highlights some potentially good news for investors on the labor market front. While the May employment report was strong, it also showed some healthy moderation in job gains and wages, which in turn could be good news for inflation. [U.S. Stocks Are Trading at a Rarely Seen Discount]( [U.S. Stocks Are Trading at a Rarely Seen Discount]( Even with the market's bounce, the selloff provides a chance to invest in significantly undervalued stocks. David Sekera [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Growth-Stock Funds That Have Stayed Near the Top ]( [Growth-Stock Funds That Have Stayed Near the Top]( These funds have managed to stay in the top third of the large-growth category. Katherine Lynch [4 Undervalued High-Dividend Stocks ]( [4 Undervalued High-Dividend Stocks]( Even as investors chase income, these high-quality dividend payers look attractive. Lauren Solberg [Putting Recent Market Volatility in Perspective]( [Putting Recent Market Volatility in Perspective]( Stocks have been more jittery than usual, but volatility is to be expected. Amy C. Arnott [This Company’s Shares Are Set to Benefit From the Auto Industry Revolution]( [This Company’s Shares Are Set to Benefit From the Auto Industry Revolution]( Aptiv, which is helping to make cars greener and smarter, is now undervalued and trading at a 24% discount. Sandy Ward [What Does Amazon’s Stock Split Mean for Investors?]( [What Does Amazon’s Stock Split Mean for Investors?]( Amazon’s stock will have a fair value estimate of $192.50 per share following 20-1 split. Jakir Hossain Chart of the Week [Job and Wage Growth Moderating, and That's Good News]( [Job and Wage Growth Moderating, and That's Good News]( It looks like the economy is shifting to a steadier, healthier pace of growth. Lauren Solberg, Preston Caldwell [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [What If This Turns Out to Be a Terrible Time to Retire?]( Pre-retirees and new retirees concerned about today's markets can take steps to protect themselves. Christine Benz [Where Does the Supply Chain Crisis Stand Now?]( There are signs the tide may be turning even as challenges continue in some sectors. Jakir Hossain [14 Top Stocks for Rocky Markets]( These solid, high-quality companies with predictable cash flows and good managers are well-equipped for today's rough market. Susan Dziubinski [Vanguard's Other Index-Fund Invention]( Should Jack Bogle have lamented his subsequent creation? John Rekenthaler [Why Investors Should Skip Invesco QQQ]( The constitution of the index that QQQ tracks lacks a sensible investment rationale, says Morningstar's analyst. Ryan Jackson Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2022 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602