Traders went on the defensive within the second quarter as financial uncertainty unsettled markets, Jakir Hossain, an affiliate markets knowledge journalist at Morningstar.com, wrote in a weblog submit on Thursday.

Shopper and well being care shares racked up huge beneficial properties, whereas software program corporations and retailers absorbed giant losses as rising rates of interest and recession fears tempered expectations for demand.

Hossain famous that solely 110 of the 865 U.S.-listed shares lined by Morningstar analysts made beneficial properties within the second quarter, down from the 313 that did so within the January-to-March interval. 

The second-quarter debacle resulted in widespread modifications in Morningstar Star Scores, in line with Hossain. Scores from 1 star to five stars are primarily based primarily on valuations. Shares with a 1-star score are the most costly, and people with 5 stars are thought of undervalued. 

In all, 485 shares within the second quarter skilled a score change by 1 star or extra, in contrast with the beginning of the quarter; for the prior 12 months, the quarterly common was 151 modifications. Of these shares whose star score modified, 241 fell into undervalued territory, whereas solely 26 grew to become overvalued.

See the gallery for the 10 shares that carried out greatest within the second quarter.