12 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 June 12, nine stocks saw their ratings change to 4 stars, while 12 joined the 80 US-listed names in 5-star territory.

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

• Microsoft MSFT
• Accenture ACN
• Adobe ADBE
• Veeva Systems VEEV
• Stellantis STLA

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 rose 0.79% over the past week as of June 12, leaving the overall US stock market moderately undervalued, hovering at an 8.00% discount to its fair value estimate on a market cap-weighted basis.

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

• 40% are undervalued, 37% are fairly valued, and 22% are overvalued.
• Nine are newly undervalued.
• 14 are newly overvalued.
• 12 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.
• 13 are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

Microsoft

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $600.00
• Uncertainty Rating: Medium

Software infrastructure firm Microsoft dropped 6.22% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 2.56% over the past three months and 17.75% over the past year. The stock’s price is 35% below its fair value estimate of $600 per share, with an Uncertainty Rating of Medium. The large-core stock has a wide economic moat.

Accenture

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

Following a 4.47% loss over the past week, information technology services company Accenture saw its Morningstar Rating move to 5 stars from 4. Accenture has lost 12.38% over the past three months and 45.04% over the past year. The large-value stock has a narrow economic moat. Accenture is trading at a 33% discount to its fair value estimate of $255 per share, with an Uncertainty Rating of Medium.

Adobe

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $380.00
• Uncertainty Rating: High

Software application firm Adobe dropped 18.86% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 24.38% over the past three months and 50.68% over the past year. The stock’s price is 46% below its fair value estimate of $380 per share, with an Uncertainty Rating of High. The large-value stock has a narrow economic moat.

Veeva Systems

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $287.00
• Uncertainty Rating: High

Following a 7.57% loss over the past week, health information services firm Veeva saw its Morningstar Rating move to 5 stars from 4. Veeva Systems has lost 11.75% over the past three months and 43.46% over the past year. The mid-core stock has a wide economic moat. Veeva is trading at a 44% discount to its fair value estimate of $287 per share, with an Uncertainty Rating of High.

Stellantis

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $14.40
• Uncertainty Rating: Very High

Auto manufacturer Stellantis dropped 3.38% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is up 0.15% over the past three months and is down 32.11% over the past year. The stock’s price is 52% below its fair value estimate of $14.40 per share, with an Uncertainty Rating of Very High. The large-value stock has no economic moat.