29 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 Sept. 18, 29 stocks saw their ratings change to 4 stars, while 12 joined the 59 US-listed names in 5-star territory

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

• Applied Materials AMAT
• BlackRock BLK
• Boeing BA
• CVS Health CVS
• MercadoLibre MELI

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 Total Market Index fell 0.17% over the past week as of Sept. 18, leaving the overall US stock market moderately undervalued, hovering at an 8% 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, 42% are fairly valued, and 18% are overvalued.
• 29 are newly undervalued.
• Three are newly overvalued.
• 12 moved from a 4-star rating to a 5-star rating.
• Zero moved from a 5-star rating to a 4-star rating.
• Among the newly undervalued stocks, zero jumped from a 3-star rating to a 5-star rating.
• Two are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Applied Materials AMAT

• Morningstar Rating: ★★★★
• Fair Value Estimate: $520
• Uncertainty Rating: High

Following a 2.61% loss over the past week, semiconductor equipment and materials firm Applied Materials saw its Morningstar Rating move to 4 stars from 3. Applied Materials has lost 27.88% over the past three months and has gained 135.60% over the past year. The large-growth stock has a wide economic moat. Applied Materials is trading at a 15% discount to its fair value estimate of $520, with an Uncertainty Rating of High.

BlackRock BLK

• Morningstar Rating: ★★★★
• Fair Value Estimate: $1,280
• Uncertainty Rating: High

Asset management firm BlackRock dropped 0.91% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is up 2.41% over the past three months and is down 3.85% over the past year. The stock’s price is 16% below its fair value estimate of $1,280, with an Uncertainty Rating of High. The large-value stock has a wide economic moat.

Boeing BA

• Morningstar Rating: ★★★★
• Fair Value Estimate: $246
• Uncertainty Rating: High

Aerospace and defense company Boeing lost 5.82% over the past week, shifting its Morningstar Rating to 4 stars from 3. Boeing has dropped 11.01% over the past three months and 8.10% over the past year. The stock is trading at a 19% discount to its fair value estimate of $246, with an Uncertainty Rating of High. Boeing is a large-growth company with a wide economic moat.

CVS Health CVS

• Morningstar Rating: ★★★★
• Fair Value Estimate: $110
• Uncertainty Rating: High

Following a 6.15% loss over the past week, healthcare plans company CVS Health saw its Morningstar Rating move to 4 stars from 3. CVS Health has lost 9.08% over the past three months and has gained 23.11% over the past year. The large-value stock has no economic moat. CVS Health is trading at a 19% discount to its fair value estimate of $110, with an Uncertainty Rating of High.

MercadoLibre MELI

• Morningstar Rating: ★★★★
• Fair Value Estimate: $2,250
• Uncertainty Rating: High

Internet retail company MercadoLibre dropped 5.80% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is up 9.31% over the past three months and is down 27.82% over the past year. The stock’s price is 21% below its fair value estimate of $2,250, with an Uncertainty Rating of High. The large-growth stock has a wide economic moat.