25 New 5-Star Stocks This Week

Every Monday, get Morningstar’s insights on company news, the latest stock market trends, and in-depth company reports from our analysts. Sign up for our Stock Strategist newsletter here.

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 Feb. 6, 34 stocks saw their ratings change to 4 stars, while 25 joined the 67 US-listed names in 5-star territory.

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

• Microsoft MSFT
• Sony Group SONY
• Intuit INTU
• Sea SE
• Workday WDAY

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 0.07% over the past week as of Feb. 6, leaving the overall US stock market moderately undervalued, hovering at a 7.00% discount to its fair value estimate on a market cap-weighted basis.

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

• 36% are undervalued, 39% are fairly valued, and 25% are overvalued.
• 34 are newly undervalued.
• 24 are newly overvalued.
• 25 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.
• 20 are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

Microsoft

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

Following a 6.77% loss over the past week, software infrastructure firm Microsoft saw its Morningstar Rating move to 5 stars from 4. Microsoft has lost 19.15% over the past three months and 2.82% over the past year. The large-core stock has a wide economic moat. Microsoft is trading at a 33% discount to its fair value estimate of $600 per share, with an Uncertainty Rating of Medium.

Sony Group

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $32.50
• Uncertainty Rating: Medium

Consumer electronics firm Sony climbed 0.72% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 21.31% over the past three months and 0.73% over the past year. The stock’s price is 32% below its fair value estimate of $32.50 per share, with an Uncertainty Rating of Medium. The large-core stock has a wide economic moat.

Intuit

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $720.00
• Uncertainty Rating: Medium

Software application firm Intuit lost 11.05% over the past week, shifting its Morningstar Rating to 5 stars from 4. Intuit has dropped 31.98% over the past three months and 24.29% over the past year. The stock is trading at a 38% discount to its fair value estimate of $720 per share, with an Uncertainty Rating of Medium. Intuit is a large-core company with a wide economic moat.

Sea

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $198.00
• Uncertainty Rating: High

Following a 6.82% loss over the past week, internet retail company Sea saw its Morningstar Rating move to 5 stars from 4. Sea has lost 29.32% over the past three months and 11.51% over the past year. The stock has a narrow economic moat. Sea is trading at a 45% discount to its fair value estimate of $198 per share, with an Uncertainty Rating of High.

Workday

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $300.00
• Uncertainty Rating: High

Software application firm Workday dropped 7.24% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 27.43% over the past three months and 41.36% over the past year. The stock’s price is 46% below its fair value estimate of $300 per share, with an Uncertainty Rating of High. The mid-growth stock has a wide economic moat.