11 New 4-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 29, 11 stocks saw their ratings change to 4 stars, while one stock joined the 78 US-listed names in 5-star territory

The five new 4-star stocks with the largest market capitalization are:

• Marvell Technology MRVL
• HCA Healthcare HCA
• Corteva CTVA
• Devon Energy DVN
• Cheniere Energy LNG

The full list of new 4-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 rose 1.53% over the past week as of May 29, leaving the overall US stock market slightly undervalued, hovering at a 4% discount to its fair value estimate on a market cap-weighted basis.

Of the 870 US-listed stocks covered by Morningstar analysts:

• 41% are undervalued, 37% are fairly valued, and 22% are overvalued.
• 11 are newly undervalued.
• 19 are newly overvalued.
• One moved from a 4-star rating to a 5-star rating.
• Nine 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.
• 25 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Marvell Technology

• Morningstar Rating: ★★★★
• Fair Value Estimate: $235.00
• Uncertainty Rating: High

Semiconductor company Marvell climbed 4.42% over the past week. The company’s stock is up 151.07% over the past three months and 222.54% over the past year. The stock’s fair value estimate rose to $235 per share from $130 during the week. It ended the week trading at a 13% discount to its new fair value estimate, with an Uncertainty Rating of High. The large-growth stock has a narrow economic moat.

HCA Healthcare

• Morningstar Rating: ★★★★
• Fair Value Estimate: $444.00
• Uncertainty Rating: Medium

Following a 3.94% loss over the past week, medical care facilities firm HCA saw its Morningstar Rating move to 4 stars from 3. HCA has lost 28.43% over the past three months and has gained 0.65% over the past year. The large-value stock has a narrow economic moat. HCA is trading at a 15% discount to its fair value estimate of $444 per share, with an Uncertainty Rating of Medium.

Corteva

• Morningstar Rating: ★★★★
• Fair Value Estimate: $90.00
• Uncertainty Rating: Medium

Agricultural inputs company Corteva lost 1.61% over the past week, shifting its Morningstar Rating to 4 stars from 3. Corteva has dropped 2.08% over the past three months and has climbed 13.40% over the past year. The stock is trading at a 13% discount to its fair value estimate of $90 per share, with an Uncertainty Rating of Medium. Corteva is a mid-core company with a wide economic moat.

Devon Energy

• Morningstar Rating: ★★★★
• Fair Value Estimate: $55.00
• Uncertainty Rating: High

Following a 5.78% loss over the past week, oil and gas exploration and production company Devon saw its Morningstar Rating move to 4 stars from 3. Devon has gained 2.74% over the past three months and 46.73% over the past year. The mid-value stock has a narrow economic moat. Devon is trading at a 19% discount to its fair value estimate of $55 per share, with an Uncertainty Rating of High.

Cheniere Energy

• Morningstar Rating: ★★★★
• Fair Value Estimate: $262
• Uncertainty Rating: Medium

Midstream oil and gas company Cheniere lost 6.64% over the past week, shifting its Morningstar Rating to 4 stars from 3. Cheniere has dropped 4.39% over the past three months and 2.05% over the past year. The stock is trading at a 14% discount to its fair value estimate of $262, with an Uncertainty Rating of Medium. Cheniere is a mid-value company with a wide economic moat.