This year is shaping up to be a "tale of two halves," according to Dave Sekera, chief U.S. market strategist for Morningstar. While the U.S. market is likely to stay volatile in the first half of this year, he told CNBC's "Street Signs Asia" last week that he expects a sustained rally in the second half. There were four headwinds to markets last year, Sekera said: slowing economic growth, monetary tightening, rising long-term interest rates and high inflation. But he predicts that these headwinds will abate by the end of 2023 – turning into tailwinds. For now, U.S. stocks are around 15% undervalued, according to Sekera, who says the extent of this undervalued territory is rare. Since the end of 2010, the market has traded at or below the current discount only 5% of the time, he said. The S & P 500 fell nearly 20% in 2022, but has climbed 5% since the start of this year. 'Undervalued' stocks Sekera names three stocks he says are undervalued right now, trading at a steep discount to Morningstar's fair value estimates. Medical technology firm Medtronic made his list: The stock is trading at a 28% discount to Morningstar's fair value estimate. "Medtronic is the largest pure-play medical-device maker and in my opinion, is a play on the long-term, structural growth we expect in the MedTech space," Sekera told CNBC Pro. He added that Medtronic should benefit as the pandemic "fades in the rear-view mirror." "During the pandemic, many patients put off surgeries and now, over [the] next 18 months, we forecast that procedure volume will continue to return and will stabilize closer to pre-pandemic levels," he said. An additional boost for shareholders? The dividend yield is almost 3.5%, Sekera noted. According to FactSet, analysts give the stock average potential upside of 6%. Sekera also named Citi , which is trading at a 34% discount to Morningstar's fair value price. "We do think over time Citi will continue to generate returns slightly above its cost of equity," he said. "Over time that stock really should appreciate towards tangible book value." Analysts give the stock average potential upside of about 10%, according to FactSet. Sekera's third pick was Dutch chip manufacturer NXP Semiconductors , which he called a "play on [the] long-term secular shift in autos to EVs." The stock is trading at a more-than 20% discount to Morningstar's fair value estimate. The stock has average potential upside of about 5%, according to consensus analyst estates on FactSet.