32 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 March 6, 32 stocks saw their ratings change to 4 stars, while five joined the 50 US-listed names in 5-star territory.

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

• BlackRock BLK
• Monolithic Power Systems MPWR
• Carrier Global CARR
• Reckitt Benckiser Group RBGLY
• Baidu BIDU

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 fell 2.14% over the past week as of March 6, 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 827 US-listed stocks covered by Morningstar analysts:

• 37% are undervalued, 42% are fairly valued, and 22% are overvalued.
• 32 are newly undervalued.
• Eight are newly overvalued.
• Five moved from a 4-star rating to a 5-star rating.
• 14 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.
• 16 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

BlackRock

• Morningstar Rating: ★★★★
• Fair Value Estimate: $1,200.00
• Uncertainty Rating: High

Asset management firm BlackRock lost 9.60% over the past week, shifting its Morningstar Rating to 4 stars from 3. BlackRock has dropped 10.35% over the past three months and has climbed 2.22% over the past year. The stock is trading at a 20% discount to its fair value estimate of $1,200 per share, with an Uncertainty Rating of High. BlackRock is a large-core company with a wide economic moat.

Monolithic Power Systems

• Morningstar Rating: ★★★★
• Fair Value Estimate: $1,300.00
• Uncertainty Rating: High

Following a 10.46% loss over the past week, semiconductor company Monolithic Power saw its Morningstar Rating move to 4 stars from 3. Monolithic Power has gained 6.40% over the past three months and 82.36% over the past year. The mid-growth stock has a wide economic moat. Monolithic Power is trading at a 21% discount to its fair value estimate of $1,300 per share, with an Uncertainty Rating of High.

Carrier Global

• Morningstar Rating: ★★★★
• Fair Value Estimate: $72.00
• Uncertainty Rating: High

Building products and equipment firm Carrier dropped 9.39% over the past week. The stock is up 7.95% over the past three months and down 9.47% over the past year. The stock is 19% below its fair value estimate of $72 per share, with an Uncertainty Rating of High. The mid-core stock has a narrow economic moat.

Reckitt Benckiser Group

• Morningstar Rating: ★★★★
• Fair Value Estimate: $18.60
• Uncertainty Rating: Medium

Following a 14.12% loss over the past week, household and personal products company Reckitt Benckiser saw its Morningstar Rating move to 4 stars from 3. Reckitt Benckiser has lost 6.11% over the past three months and has gained 14.90% over the past year. The large-core stock has a wide economic moat. Reckitt Benckiser is trading at a 19% discount to its fair value estimate of $18.60 per share, with an Uncertainty Rating of Medium.

Baidu

• Morningstar Rating: ★★★★
• Fair Value Estimate: $128.00
• Uncertainty Rating: High

Internet content company Baidu lost 4.33% over the past week, shifting its Morningstar Rating to 4 stars from 3. Baidu has dropped 5.26% over the past three months and has climbed 27.48% over the past year. The stock is trading at a discount to its fair value estimate of $128 per share, with an Uncertainty Rating of High. Baidu is a large-value company with no economic moat.