Market Extra: These are the only 9 stocks Morningstar is fully bullish on

The U.S. stock market is so expensive that only a handful of stocks quality as “five-star” names, according to Kunal Kapoor, the chief executive officer of Morningstar Inc., who nonetheless stressed that investors shouldn’t panic.

In a speech Wednesday at his company’s annual investment conference, Kapoor pointed to a Morningstar calculation of fair value for the U.S. market. Last year, it was at 0.86, meaning the market was 14% undervalued. “Generally speaking it was a good environment to invest in, even if it felt uncertain,” he said.

Now, the metric is at 1.04, indicating it is 4% overvalued; last week, it was 2% overvalued.

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