10 New 5-Star Stocks This Week

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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

. For the week ended May 15, 35 stocks saw their ratings change to 4 stars, while 10 joined the 83 US-listed names in 5-star territory.

The five new 5-star stocks with the largest market capitalization are:

• Amphenol APH
• S&P Global SPGI
• Accenture ACN
• Medtronic MDT
• Reckitt Benckiser Group RBGLY

The full list of new 5-star stocks can be found at the bottom of this story. 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

—Morningstar’s estimate of its intrinsic worth—and its , 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 Market Index fell 0.02% over the past week as of May 15, leaving the overall US stock market moderately undervalued, hovering at a 6% discount to its fair value estimate on a market cap-weighted basis.

Of the 866 US-listed stocks covered by Morningstar analysts:

• 41% are undervalued, 38% are fairly valued, and 21% are overvalued.
• 35 are newly undervalued.
• 14 are newly overvalued.
• 10 moved from a 4-star rating to a 5-star rating.
• Four 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.
• Seven are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

Amphenol

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $190.00
• Uncertainty Rating: Medium

Electronic components company Amphenol lost 2.37% over the past week, shifting its Morningstar Rating to 5 stars from 4. Amphenol has dropped 14.64% over the past three months and has climbed 46.42% over the past year. The stock is trading at a 34% discount to its fair value estimate of $190 per share, with an Uncertainty Rating of Medium. Amphenol is a large-growth company with a wide economic moat.

S&P Global

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $530.00
• Uncertainty Rating: Low

Following a 4.04% loss over the past week, financial data firm S&P Global saw its Morningstar Rating move to 5 stars from 4. S&P Global has lost 1.33% over the past three months and 21.75% over the past year. The large-core stock has a wide economic moat. S&P Global is trading at a 24% discount to its fair value estimate of $530 per share, with an Uncertainty Rating of Low.

Accenture

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $255.00
• Uncertainty Rating: Medium

Information technology services company Accenture lost 6.43% over the past week, shifting its Morningstar Rating to 5 stars from 4. Accenture has dropped 24.05% over the past three months and 46.37% over the past year. The stock is trading at a 34% discount to its fair value estimate of $255 per share, with an Uncertainty Rating of Medium. Accenture is a large-value company with a narrow economic moat.

Medtronic

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $112.00
• Uncertainty Rating: Medium

Medical devices company Medtronic saw its Morningstar Rating move to 5 stars from 4. Medtronic has lost 22.84% over the past three months and 8.77% over the past year. The large-value stock has a narrow economic moat. Medtronic is trading at a 32% discount to its fair value estimate of $112 per share, with an Uncertainty Rating of Medium.

Reckitt Benckiser Group

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $18.60
• Uncertainty Rating: Medium

Household and personal products company Reckitt lost 4.11% over the past week, shifting its Morningstar Rating to 5 stars from 4. Reckitt has dropped 28.81% over the past three months and 0.68% over the past year. The stock is trading at a 34% discount to its fair value estimate of $18.60 per share, with an Uncertainty Rating of Medium. Reckitt is a large-value company with a wide economic moat.