35 New 4-Star Stocks
Nvidia and Amazon are among the stocks that fell into undervalued territory.
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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 Morningstar Ratings. For the week ended Nov. 21, 35 stocks saw their ratings change to 4 stars, while 10 joined the 65 US-listed names in 5-star territory.
The five new 4-star stocks with the largest market capitalization are:
The five new 5-star stocks with the largest market capitalization are:
The full lists of new 4- and 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 fair value estimate—Morningstar’s estimate of its intrinsic worth—and its Uncertainty Rating, 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 rated 1 or 2 stars are considered overvalued.
The Latest Stock Valuation Changes
The Morningstar US Market Index fell 1.88% over the past week as of Nov. 21, leaving the overall US stock market slightly undervalued, hovering at a 2% discount to its fair value estimate on a market cap-weighted basis.
Of the 841 US-listed stocks covered by Morningstar analysts:
- 42% are undervalued, 39% are fairly valued, and 19% are overvalued.
- 35 are newly undervalued.
- Two are newly overvalued.
- 10 moved from a 4-star rating to a 5-star rating.
- Two 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.
- Seven are no longer undervalued.
Metrics for This Week’s New 4-Star Stocks
Nvidia
- Morningstar Rating: ★★★★
- Fair Value Estimate: $240.00
- Uncertainty Rating: Very High
Following a 5.94% loss over the past week, semiconductor company Nvidia saw its Morningstar Rating move to 4 stars from 3. Nvidia has gained 2.23% over the past three months and 22.00% over the past year. The large-growth stock has a wide economic moat. The stock’s fair value estimate rose to $240 per share from $225 during the week. It ended the week trading at a 25% discount to its new fair value estimate, with an Uncertainty Rating of Very High.
Amazon
- Morningstar Rating: ★★★★
- Fair Value Estimate: $260.00
- Uncertainty Rating: Medium
Internet retail company Amazon lost 5.97% over the past week, shifting its Morningstar Rating to 4 stars from 3. Amazon has dropped 0.57% over the past three months and has climbed 11.25% over the past year. The stock is trading at a 15% discount to its fair value estimate of $260 per share, with an Uncertainty Rating of Medium. Amazon is a large-core company with a wide economic moat.
Advanced Micro Devices
- Morningstar Rating: ★★★★
- Fair Value Estimate: $270.00
- Uncertainty Rating: Very High
Semiconductor company AMD dropped 17.43% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is up 24.48% over the past three months and 48.21% over the past year. The stock’s price is 25% below its fair value estimate of $270 per share, with an Uncertainty Rating of Very High. The large-growth stock has a narrow economic moat.
Toyota Motor
- Morningstar Rating: ★★★★
- Fair Value Estimate: $240.00
- Uncertainty Rating: High
Auto manufacturer Toyota lost 3.17% over the past week, shifting its Morningstar Rating to 4 stars from 3. Toyota has climbed 0.18% over the past three months and 16.21% over the past year. The stock is trading at an 18% discount to its fair value estimate of $240 per share, with an Uncertainty Rating of High. Toyota is a large-value company with no economic moat.
Disney
- Morningstar Rating: ★★★★
- Fair Value Estimate: $120.00
- Uncertainty Rating: Medium
Entertainment company Disney dropped 1.44% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 10.27% over the past three months and 8.31% over the past year. The stock’s price is 13% below its fair value estimate of $120, with an Uncertainty Rating of Medium. The large-value stock has a wide economic moat.
Metrics for This Week’s New 5-Star Stocks
Adobe
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $560.00
- Uncertainty Rating: High
Software application firm Adobe lost 2.09% over the past week, shifting its Morningstar Rating to 5 stars from 4. Adobe has dropped 8.27% over the past three months and 35.73% over the past year. The stock is trading at a 42% discount to its fair value estimate of $560 per share, with an Uncertainty Rating of High. Adobe is a large-value company with a wide economic moat.
RELX
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $52.00
- Uncertainty Rating: Low
Following a 1.77% loss over the past week, specialty business services firm RELX saw its Morningstar Rating move to 5 stars from 4. RELX has lost 15.75% over the past three months and 9.79% over the past year. The large-core stock has a wide economic moat. RELX is trading at a 22% discount to its fair value estimate of $52 per share, with an Uncertainty Rating of Low.
HubSpot
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $650.00
- Uncertainty Rating: High
Software application firm HubSpot dropped 10.35% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 22.07% over the past three months and 50.65% over the past year. The stock’s price is 45% below its fair value estimate of $650 per share, with an Uncertainty Rating of High. The mid-growth stock has a narrow economic moat.
Weyerhaeuser
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $32.00
- Uncertainty Rating: Medium
Following a 1.58% loss over the past week, specialty REIT Weyerhaeuser saw its Morningstar Rating move to 5 stars from 4. Weyerhaeuser has lost 14.80% over the past three months and 26.72% over the past year. The mid-value stock has no economic moat. Weyerhaeuser is trading at a 32% discount to its fair value estimate of $32 per share, with an Uncertainty Rating of Medium.
Elastic
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $119.00
- Uncertainty Rating: High
Software application firm Elastic dropped 22.89% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 9.73% over the past three months and 25.59% over the past year. The stock’s fair value estimate was cut to $119 per share from $121 during the week. It ended the week trading at a 41% discount to its new fair value estimate, with an Uncertainty Rating of High. The small-growth stock has a narrow 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.
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