Following the market’s rebound, stocks are trading much closer to our fair value estimates. The stock market’s swift recovery has us seeing much less value in the North American equity market— although pockets of opportunity remain. As concerns about the coronavirus pandemic began to dissipate and economies reopened, the Morningstar US Market Index surged almost 25% from the end of the first quarter. The median stock in our North American equity coverage now trades at only a 5% discount to our fair value estimate compared with a 22% discount near the end of March. Of the roughly 800 North American stocks we cover, 34% carry an undervalued rating of 4 or 5 stars. Three months ago, a hefty two thirds of our coverage was undervalued. Of the 11 sectors we cover, the median stock trades at a more than 10% discount in only three compared with 10 last quarter.{…] Click here to view the full article By Morning Star, July 21, 2020