33 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 13, 33 stocks saw their ratings change to 4 stars, while 15 joined the 64 US-listed names in 5-star territory.

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

• Roche RHHBY
• Anheuser-Busch BUD
• Unilever UL
• Rolls-Royce Holdings RYCEY
• Capital One Financial COF

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 1.60% over the past week as of March 13, leaving the overall US stock market significantly undervalued, hovering at a 10% discount to its fair value estimate on a market cap-weighted basis.

Of the 829 US-listed stocks covered by Morningstar analysts:

• 40% are undervalued, 41% are fairly valued, and 19% are overvalued.
• 33 are newly undervalued.
• Six are newly overvalued.
• 15 moved from a 4-star rating to a 5-star rating.
• One 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.
• Nine are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Roche

• Morningstar Rating: ★★★★
• Fair Value Estimate: $57.00
• Uncertainty Rating: Low

Drug manufacturer Roche lost 6.64% over the past week, shifting its Morningstar Rating to 4 stars from 3. Roche has climbed 3.34% over the past three months and 24.65% over the past year. The stock is trading at a 12% discount to its fair value estimate of $57 per share, with an Uncertainty Rating of Low. Roche is a large-core company with a wide economic moat.

Anheuser-Busch

• Morningstar Rating: ★★★★
• Fair Value Estimate: $83.00
• Uncertainty Rating: Medium

Following a 1.71% loss over the past week, alcoholic beverages company Anheuser-Busch saw its Morningstar Rating move to 4 stars from 3. Anheuser-Busch has gained 13.57% over the past three months and 20.29% over the past year. The large-core stock has a wide economic moat. Anheuser-Busch is trading at a 13% discount to its fair value estimate of $83 per shares, with an Uncertainty Rating of Medium.

Unilever

• Morningstar Rating: ★★★★
• Fair Value Estimate: $70.00
• Uncertainty Rating: Low

Household and personal products company Unilever dropped 4.15% over the past week, bumping its Morningstar Rating to 4 stars from 3. The stock is down 0.63% over the past three months but up 0.36% over the past year. The stock’s price is 8% below its fair value estimate of $70 per shares, with an Uncertainty Rating of Low. The large-core stock has a wide economic moat.

Rolls-Royce Holdings

• Morningstar Rating: ★★★★
• Fair Value Estimate: $20.50
• Uncertainty Rating: High

Aerospace and defense company Rolls-Royce lost 4.42% over the past week, shifting its Morningstar Rating to 4 stars from 3. Rolls-Royce has climbed 10.66% over the past three months and 62.41% over the past year. The stock is trading at a 20% discount to its fair value estimate of $20.50 per share, with an Uncertainty Rating of High. Rolls-Royce is a large-growth company with a narrow economic moat.

Capital One Financial

• Morningstar Rating: ★★★★
• Fair Value Estimate: $225
• Uncertainty Rating: High

Following a 4.22% loss over the past week, credit services firm Capital One saw its Morningstar Rating move to 4 stars from 3. Capital One has lost 24.12% over the past three months and has gained 9.74% over the past year. The large-value stock has a narrow economic moat. Capital One is trading at a 20% discount to its fair value estimate of $225 per share, with an Uncertainty Rating of High.