These 5-star-rated stocks are substantially undervalued

It's getting hard to find quality stocks at a bargain; these four names may fit the bill.

Vikram Barhat 23 August, 2016 | 5:00PM

Investors are spooked by the current market frothiness and a fragile global economy. Many are opting to stay in cash while waiting for the market uncertainty to abate. In fact, investors are currently holding the biggest cash pile since 2001, according to a Bank of America Merrill Lynch survey of fund managers in June.

Things aren't getting any easier for bargain hunters with the S&P 500 and the S&P/TSX Composite Index clocking year-to-date gains of 15.1% and 8.3% respectively, as of August 17, 2016.

Valuations matter. Luckily, little islands of opportunities still exist in a sea of stretched equity valuations. A close look at the vast coverage universe of Morningstar, which includes more than 90% of the firms in the S&P 500, reveals a small number of high-quality names that are still significantly undervalued.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Hanesbrands Inc12.88 USD0.15
HollyFrontier Corp32.04 USD-0.99
Roche Holding AG ADR39.90 USD-2.17
Williams-Sonoma Inc62.17 USD-1.94

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a freelance writer.