December 3, 2023

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10 Undervalued Preferred Stocks According to Morningstar

10 Undervalued Preferred Stocks According to Morningstar

The stock market is now trading at an attractive discount again, according to Morningstar chief strategist Dave Sekera. That’s why Morningstar created this fourth-quarter list of undervalued preferred stocks. In this article you will find the top ten.

The Morningstar US stock market index rose 13% during the first nine months of the year, versus 7% for the S&P 500. However, stocks in the Morningstar index were trading at an 8% discount at the end of the third quarter compared to the third quarter. Estimated fair value. So, the market came back at an attractive discount, according to David Sekera, market strategist at Morningstar.

Investors are advised to take a market-weighted position in growth stocks and overweight them value Takes. Morningstar has compiled a list of 33 undervalued stocks that are our favorites for the fourth quarter. We’ve arranged the top ten alphabetically.

Real estate is cheap

Investors can use different metrics to measure a stock’s value. Morningstar defines undervalued stocks as those that trade below fair value estimates, and undervalued stocks come from a variety of sectors. Real estate is the most undervalued sector, while energy appears to be overvalued by 3%.

Resources, railways and entertainment

Albemarle It is the largest producer of lithium in the world. In 2022, electric vehicles will account for nearly 10% of global sales, up from just under 6% in 2021, Morningstar analyst Seth Goldstein wrote. Lithium is an important element in electric vehicle batteries and Albemarle can benefit from it

Railway company Norfolk South Analyst Matthew Young says it’s a well-managed company. Despite setbacks in 2022 related to labor constraints and service issues, Norfolk Southern was able to use assets and labor more efficiently.

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Walt Disney It is in the midst of transformation to meet the continuing evolution of the media industry, says analyst Matthew Dolgin. He sees the company’s direct-to-consumer efforts, such as Disney+, as the driving force for long-term growth. ESPN remains the dominant sports television network. The company has strong pricing power. In our country, the sports channel was able to obtain the rights to broadcast the English Premier League until 2030.

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