3 Key Charts for Q3

The latest European equity market outlook covers key sectors and stocks for the current quarter. We pick some standout charts from the report

James Gard 14 July, 2021 | 9:09AM
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graphic of binoculars

Morningstar analysts have just produced their Europe Equity Market Outlook for Q3, which looks in-depth at a range of industries. They also highlight some top stock picks for each sector. We’ve looked at the report in detail and found three charts that highlight some important market trends.

Overvalued and Undervalued Stocks in Europe

The Morningstar Rating for stocks indicates whether a firm's share prices is cheap or expensive relative to its fair value estimate. Looking at the 10 sectors covered by this chart, it’s clear that there are a big chunk of stocks in each industry that are fairly valued, as represented by the yellow band. But there are significant differences in the number of 5 star (cheap) and 1-star (expensive) stocks in each industry, which makes a difference for those looking to find cheap or undervalued companies or avoid overheated sectors. 

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European Equity Market Outlook

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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James Gard  is content editor for Morningstar.co.uk