34 New 4-Star Stocks This Week
Amazon and AMD are among the stocks that fell into undervalued territory.
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
The five new 4-star stocks with the largest market capitalization are:
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
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 4-Star Stocks
Amazon
- Morningstar Rating: ★★★★
- Fair Value Estimate: $260.00
- Uncertainty Rating: Medium
Internet retail company Amazon dropped 12.11% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 13.46% over the past three months and 11.94% over the past year. The stock’s price is 19% below its fair value estimate of $260 per share, with an Uncertainty Rating of Medium. The large-core stock has a wide economic moat.
Advanced Micro Devices
- Morningstar Rating: ★★★★
- Fair Value Estimate: $270.00
- Uncertainty Rating: Very High
Semiconductor company AMD lost 11.95% over the past week, shifting its Morningstar Rating to 4 stars from 3. AMD has dropped 12.31% over the past three months and has climbed 89.22% over the past year. The stock is trading at a 23% discount to its fair value estimate of $270 per share, with an Uncertainty Rating of Very High. AMD is a large-growth company with a narrow economic moat.
Novo Nordisk
- Morningstar Rating: ★★★★
- Fair Value Estimate: $59.00
- Uncertainty Rating: High
Drug manufacturer Novo dropped 19.84% over the past week. The company’s stock is up 2.43% over the past three months and is down 43.85% over the past year. The stock’s fair value estimate was cut to $59 per share from $66 during the week. It ended the week trading at a 19% discount to its new fair value estimate, with an Uncertainty Rating of High. The large-core stock has a wide economic moat.
Thermo Fisher Scientific
- Morningstar Rating: ★★★★
- Fair Value Estimate: $630.00
- Uncertainty Rating: Medium
Following a 6.18% loss over the past week, diagnostics and research firm Thermo Fisher saw its Morningstar Rating move to 4 stars from 3. Thermo Fisher has lost 4.02% over the past three months and 4.88% over the past year. The large-value stock has a wide economic moat. Thermo Fisher is trading at a 14% discount to its fair value estimate of $630 per share, with an Uncertainty Rating of Medium.
Walt Disney
- Morningstar Rating: ★★★★
- Fair Value Estimate: $120.00
- Uncertainty Rating: Medium
Entertainment company Disney lost 3.63% over the past week, shifting its Morningstar Rating to 4 stars from 3. Disney has dropped 0.95% over the past three months and 1.95% over the past year. The stock is trading at a 9% discount to its fair value estimate of $120 per share, with an Uncertainty Rating of Medium. Disney is a large-value company with a wide economic moat.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors own shares in one or more securities mentioned in this article. Find out about Morningstar’s editorial policies.
United States