The S&P 500 staged a remarkable comeback in the second quarter, rising 20 per cent in just three months.

We think stocks overall are about fairly valued: The median stock in our North American coverage universe traded at just a 5 per cent discount to our fair value estimate at the end of the second quarter, compared with a 20 per cent discount at the end of the first quarter.

"Of the roughly 800 North American stocks we cover, 34 per cent carry an undervalued rating of 4 or 5 stars," observes Jeffrey Stafford, Morningstar's director of North American equity research, in his latest stock market outlook.

"Three months ago, a hefty two thirds of our coverage was undervalued."

Stocks in the technology and healthcare sectors are starting to look expensive, adds Stafford, while plenty of opportunities remain in energy and consumer cyclical stocks.

Morningstar has unveiled it's list of 33 undervalued stocks—today we give you a taste.

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Don't think of this as a list of "buys," though. Instead, think of it as a collection of names to investigate further. See the individual stock pages for full analysis.

Top picks across sectors

This is a snapshot of how these stocks stand at the time of writing: 07 July 2020. Given the current market volatility, the valuations could jump around.

33 undervalued stocks

Source: Morningstar Premium. Data as of 02 July 2020.

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