First American News LLC, Raleigh, NC First Energy, tech, and real estate are leading the market. Here are some names with room to run in 2022. U.S. stocks are finishing the year posting strong gains, with energy, technology, and real estate stocks leading the way higher.
For investors who expect these trends to continue, the challenge is where to find opportunities among these stocks, many of which have posted outsize gains in 2021.
Technology and real estate stocks largely land on the overvalued side of the fence, making it especially difficult for stock investors to find a pick at a reasonable price in these sectors. Among the tech stocks covered by Morningstar analysts, one-third are in the overvalued territory and roughly 45% are deemed fairly valued. It’s a similar story for real estate stocks, with one-third overvalued and over half fairly valued. Energy stocks, however, remain largely undervalued based on Morningstar’s metrics. Read more on undervalued stocks at The Economist.