Morningstar

1 New 5-Star Stock This Week

Under Armour fell into 5-star territory.

A detailed view of the Under Armour logo on the goal post.
Maria Lysaker/UFL via Getty
Securities in This Article
Under Armour Inc Class A
(UAA)

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Once a week, we screen the US-listed stocks under Morningstar’s coverage for newly undervalued names—those whose prices have just fallen into ranges worthy of 4- or 5-star

Morningstar Ratings
. For the week ended Aug. 14, nine stocks saw their ratings change to 4 stars, while one additional stock joined the 46 US-listed names in 5-star territory.

The new 5-star stock is:

  • Under Armour UAA

All returns in this article are reported in the stock’s base currency, and all data is sourced from Morningstar Direct.

What Is the Morningstar Rating for Stocks?

The Morningstar Rating can help investors identify stocks that are truly undervalued or overvalued, cutting through the market noise. The rating is determined by three factors: a stock’s price, its

fair value estimate
—Morningstar’s estimate of its intrinsic worth—and its
Uncertainty Rating
, which captures the range of potential outcomes for that estimate. Stocks rated 4 or 5 stars are considered undervalued, those rated 3 stars are fairly valued, and the ones rated 1 or 2 stars are considered overvalued.

The Latest Stock Valuation Changes

The Morningstar US Total Market Index rose 0.51% over the past week as of Aug. 14, leaving the overall US stock market slightly undervalued, hovering at a 5.00% discount to its fair value estimate on a market cap-weighted basis.

Of the 879 US-listed stocks covered by Morningstar analysts:

  • 29% are undervalued, 38% are fairly valued, and 21% are overvalued.
  • Nine are newly undervalued.
  • Nine are newly overvalued.
  • One moved from a 4-star rating to a 5-star rating.
  • Two moved from a 5-star rating to a 4-star rating.
  • None of the newly undervalued stocks jumped from a 3-star rating to a 5-star rating.
  • 16 are no longer undervalued.

Metrics for This Week’s New 5-Star Stock

Under Armour UAA

  • Morningstar Rating: ★★★★★
  • Fair Value Estimate: $12.00
  • Uncertainty Rating: Very High

Apparel manufacturing company Under Armour dropped 12.27% over the past week. The company’s stock is up 5.10% over the past three months and 8.94% over the past year. The stock’s fair value estimate was cut to $12.00 per share from $12.50 during the week. It ended the week trading at a 55% discount to its new fair value estimate, with an Uncertainty Rating of Very High. The small-core stock has no economic moat.

This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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