Alibaba and BAE Systems Join Value Stocks List

Morningstar equity analysts made cosiderable changes to their Global Large Cap Pick List of stocks trading at attractive valuations

Elizabeth Collins, CFA 9 January, 2019 | 2:24PM

Alibaba tech stock added to value equities list investing

The US stock market appears fully valued, despite volatility towards the end of the year, say Morningstar equity analysts, with the price/fair value ratio for S&P 500 stocks that are under Morningstar research at 94% as of December 31, down from last month’s ratio of 99%.

The S&P 500 fell by 9.18% in December, closing at 2,507 at the end of the month. On a relative basis, utilities and healthcare ranked as the most expensive sectors, trading at roughly 100% of fair value.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Alibaba Group Holding Ltd ADR219.63 USD-0.33
BAE Systems PLC643.20 GBX-2.81
Mattel Inc13.95 USD-3.13

About Author

Elizabeth Collins, CFA  is an associate director of equity research with Morningstar.

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