33 Undervalued Stocks for Q1: Morningstar, 2024 | ThinkAdvisor (2024)

After finishing 2023 up 26%, the U.S. stock market looks fairly valued, Morningstar investment specialist Susan Dziubinski writes in a blog post this week.

An analysis of companies in Morningstar’s coverage indicates that the U.S. stock market was trading at a price/fair value of 1.00 at the end of last year. This compares with a 16% discount to fair value at the start of 2023.

What might this portend for 2024? Dziubinski’s colleague, chief U.S. market strategist David Sekera, noted in his first-quarter 2024 stock market outlook that the rate of economic growth will slow and that stocks are nearing their highs. He added, however, that multiple undervalued areas provide relatively large margins of safety.

According to Dziubinski, Morningstar analysts look at stock market valuations in several ways. By investment style, small-value stocks are the most undervalued at present, trading 20% below Morningstar’s fair-value estimate. In contrast, large core stocks are 8% overvalued.

By sector, technology, industrials and consumer cyclicals look overvalued, while communication services is the most undervalued sector.

And by Morningstar economic moat rating, which signals a company’s competitive advantages, wide-moat stocks are overvalued by 1%, while narrow- and no-moat stocks are undervalued by 2% and 5%.

See the accompanying gallery for 33 undervalued stocks for the first quarter, according to Morningstar analysts, with individual stock data as of Dec. 28.

33 Undervalued Stocks for Q1: Morningstar, 2024 | ThinkAdvisor (2024)

FAQs

Which stocks are undervalued in 2024? ›

Key Takeaways
TickerCompanySector
STRRStar Equity Holdings Inc.Healthcare
ACICAmerican Coastal Insurance Corp.Financials
CLROClearOne Inc.Information Technology
NCMINational CineMedia Inc.Communication Services
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What is the market prediction for Q1 2024? ›

The Atlanta Fed forecasts Q1 2024 GDP at 2.3%. Expectations for Federal Reserve (Fed) rate cuts have steadily declined due to stickier-than-anticipated inflation. Nevertheless, global stock markets were mostly higher in Q1. U.S. stocks returned an impressive 10.6%, while U.S. bonds fell by 0.8%.

Which stock will boom in 2024? ›

Performance List of Multibagger Penny Stocks for 2024
NameBook Value1 Year (%)
J Taparia Projects₹ 18.56345.61%
Rasi Electrodes₹ 9.4552.90%
3P Land Holdings₹ 37.7524.68%
SAL Steel₹ 4.87110.65%
6 more rows
7 days ago

Where to invest in Q1 2024? ›

Overview: Best investments in 2024
  • High-yield savings accounts. Overview: A high-yield online savings account pays you interest on your cash balance. ...
  • Long-term certificates of deposit. ...
  • Long-term corporate bond funds. ...
  • Dividend stock funds. ...
  • Value stock funds. ...
  • Small-cap stock funds. ...
  • REIT index funds. ...
  • S&P 500 index funds.

What are the top undervalued stocks in March 2024? ›

The top undervalued, non-penny stocks on the NYSE or the Nasdaq for March 2024 that trade below $50 per share include Joyy, Ebang International Holdings, STRATTEC Security, Central Plains Bancshares, EuroDry, Landsea Homes, Viatris, Alico, Universal Stainless & Alloy Products, EQT, and Consolidated Water Co.

What are the undervalued dividend stocks in March 2024? ›

The four stocks on the NYSE or Nasdaq with the highest forward dividend yield that also trade for $25 or less as of March 2024 include Petrobras, Jiayin Group, Great Elm Capital Corp., and Angel Oak Mortgage REIT.

What stocks to invest in in 2024? ›

*Based on current CFRA 12-month target prices.
  • Nvidia Corp. (NVDA) ...
  • Alphabet Inc. (GOOG, GOOGL) ...
  • Meta Platforms Inc. (META) ...
  • JPMorgan Chase & Co. (JPM) ...
  • Tesla Inc. (TSLA) ...
  • Mastercard Inc. (MA) ...
  • Salesforce Inc. (CRM) ...
  • Advanced Micro Devices Inc. (AMD)

What markets to invest in in 2024? ›

Best stocks to buy
  • Alphabet (GOOG, GOOGL).
  • Meta Platforms (META).
  • Broadcom (AVGO).
  • UnitedHealth (UNH).
  • ServiceNow (NOW).

Is the first quarter of 2024 a recession? ›

With that in mind, the forecasters put the odds of a recession in 2024 as follows: 1st quarter: 17.3% 2nd quarter: 23.9% 3rd quarter: 25.6%

Which stocks will double in 2024? ›

Strategic Investments: Unveiling the Top 5 Stocks for 2024
  • List of top 5 Stocks for 2024.
  • HDFC Bank Ltd. Company Overview. Key Growth Factors. ...
  • Wipro Ltd. Company Overview. Key Growth Factors. ...
  • Titan Company Ltd. Company Overview. ...
  • Hindustan Unilever Ltd. Company Overview. ...
  • IRCTC Ltd. Company Overview. ...
  • The Bottom Line.
Jan 10, 2024

What is the best multibagger stock to buy in 2024? ›

Moving on to 2024, some of the best multibagger stocks to buy include Meta Platforms, Inc. (NASDAQ:META), NVIDIA Corporation (NASDAQ:NVDA), and Uber Technologies, Inc. (NYSE:UBER).

What is the best stock to buy for beginners in 2024? ›

Amazon is one of the best stocks for beginners if you are investing for the long-term. The company generates significant revenue from the Amazon Web Services (AWS) cloud computing business. This segment will continue to grow throughout 2024.

Where to invest $50,000 for 3 years? ›

If you have $50,000 to invest, there are plenty of good options. You can choose safe investments, like CDs or high-yield savings accounts. Alternatively, you can invest in things like stocks and real estate in the hopes of achieving superior long-term returns.

What is the safest investment with the highest return? ›

Here are the best low-risk investments in April 2024:
  • High-yield savings accounts.
  • Money market funds.
  • Short-term certificates of deposit.
  • Series I savings bonds.
  • Treasury bills, notes, bonds and TIPS.
  • Corporate bonds.
  • Dividend-paying stocks.
  • Preferred stocks.
Apr 1, 2024

How to get 10% return on investment? ›

Investments That Can Potentially Return 10% or More
  1. Stocks.
  2. Real Estate.
  3. Private Credit.
  4. Junk Bonds.
  5. Index Funds.
  6. Buying a Business.
  7. High-End Art or Other Collectables.
Sep 17, 2023

What are the best undervalued stocks to buy? ›

Top Undervalued Stocks: List of the Most Underrated Sector Shares in India 2024
  • Sun Pharmaceutical Industries Ltd.
  • Avenue Supermarts Ltd.
  • Coal India Ltd.
  • Varun Beverages Ltd.
  • Eicher Motors Ltd.
  • Bharat Electronics Ltd.
  • ABB India Ltd.
  • Dr Reddy's Laboratories Ltd.
Feb 19, 2024

Which stock is best for 2025? ›

10 Multibagger Penny Stocks for 2025
Name of the ShareBook Value (₹)1 Year (%)
Indian Railways Finance Corporation Ltd36.49187.84
Trident Ltd8.121.93
Yes Bank14.08-2.23
Exide Industries148.6954.70
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Dec 20, 2023

How to see if a stock is undervalued? ›

Price-to-earnings ratio (P/E)

A company's P/E ratio is the most popular way to measure its value. In essence, it shows how much you'd have to spend to make $1 in profit. A low P/E ratio could mean the stocks are undervalued. P/E ratio is calculated by dividing the price per share by the earnings per share (EPS).

What are the most overvalued stocks right now? ›

Most overvalued US stocks
SymbolRSI (14)Price
FEXD D93.0211.40 USD
LABP D90.5322.31 USD
MCAC D88.6911.24 USD
AQU D86.3611.00 USD
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