20 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 Jan. 30, 20 stocks saw their ratings change to 4 stars, while five joined the 51 US-listed names in 5-star territory

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

• Amphenol APH
• Qualcomm QCOM
• Blackstone BX
• Kohlberg Kravis Roberts KKR
• Airbnb ABNB

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 0.1% over the past week as of Jan. 30, leaving the overall US stock market moderately undervalued, hovering at a 5.0% discount to its fair value estimate on a market cap-weighted basis.

Of the 824 US-listed stocks covered by Morningstar analysts:

• 34% are undervalued, 40% are fairly valued, and 26% are overvalued.
• 20 are newly undervalued.
• 20 are newly overvalued.
• Five moved from a 4-star rating to a 5-star rating.
• Three 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.
• 10 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Amphenol

• Morningstar Rating: ★★★★
• Fair Value Estimate: $170.00
• Uncertainty Rating: Medium

Electronic components company Amphenol lost 4.58% over the past week. Amphenol has climbed 3.77% over the past three months and 102.61% over the past year. The stock’s fair value estimate rose to $170 per share from $135 during the week. It ended the week trading at a 15% discount to its new fair value estimate, with an Uncertainty Rating of Medium. Amphenol is a large-growth company with a wide economic moat.

Qualcomm

• Morningstar Rating: ★★★★
• Fair Value Estimate: $185.00
• Uncertainty Rating: High

Following a 2.71% loss over the past week, semiconductor company Qualcomm saw its Morningstar Rating move to 4 stars from 3. Qualcomm has lost 14.05% over the past three months and 9.86% over the past year. The large-value stock has a narrow economic moat. Qualcomm is trading at an 18% discount to its fair value estimate of $185 per share, with an Uncertainty Rating of High.

Blackstone

• Morningstar Rating: ★★★★
• Fair Value Estimate: $175.00
• Uncertainty Rating: High

Asset management firm Blackstone lost 5.36% over the past week, shifting its Morningstar Rating to 4 stars from 3. Blackstone has dropped 3.17% over the past three months and 17.42% over the past year. The stock is trading at a 19% discount to its fair value estimate of $175 per share, with an Uncertainty Rating of High. Blackstone is a large-core company with a wide economic moat.

Kohlberg Kravis Roberts

• Morningstar Rating: ★★★★
• Fair Value Estimate: $140.00
• Uncertainty Rating: High

Following a 5.76% loss over the past week, asset management firm Kohlberg Kravis Roberts saw its Morningstar Rating move to 4 stars from 3. Kohlberg Kravis Roberts has lost 3.10% over the past three months and 31.14% over the past year. The large-value stock has a narrow economic moat. Kohlberg Kravis Roberts is trading at an 18% discount to its fair value estimate of $140 per share, with an Uncertainty Rating of High.

Airbnb

• Morningstar Rating: ★★★★
• Fair Value Estimate: $168.00
• Uncertainty Rating: High

Travel services company Airbnb lost 2.1% over the past week. Airbnb has climbed 2.40% over the past three months and has dropped 1.84% over the past year. The stock’s fair value estimate rose to $168 per share from $154 during the week. It ended the week trading at a 23% discount to its new fair value estimate, with an Uncertainty Rating of High. Airbnb is a large-core company with a wide economic moat.