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No. of Recommendations: 7
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.

Here are some specific undervalued stocks across sectors that are among our analysts' best ideas.

CVS seems to be in lot of undervalued stock picks.

I am surprised to see Alphabet rated at a P/FV of 0.78, even more undervalued than CVS at 0.83 and BRK.B at 0.88.

In an article a couple of weeks back, they included AMZN 0.76, MRK 0.77 and GILD 0.81 among bargain wide moat stocks, but not in this list.
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