35 New 4-Star Stocks This Week
Capital One and Moody’s 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
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 fell 0.02% over the past week as of May 15, leaving the overall US stock market moderately undervalued, hovering at a 6% discount to its fair value estimate on a market cap-weighted basis.
Of the 866 US-listed stocks covered by Morningstar analysts:
- 41% are undervalued, 38% are fairly valued, and 21% are overvalued.
- 35 are newly undervalued.
- 14 are newly overvalued.
- 10 moved from a 4-star rating to a 5-star rating.
- Four 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
Capital One Financial
- Morningstar Rating: ★★★★
- Fair Value Estimate: $225.00
- Uncertainty Rating: High
Credit services firm Capital One dropped 1.22% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 9.39% over the past three months and 3.91% over the past year. The stock’s price is 17% below its fair value estimate of $225 per share, with an Uncertainty Rating of High. The large-value stock has a narrow economic moat.
Moody’s
- Morningstar Rating: ★★★★
- Fair Value Estimate: $500.00
- Uncertainty Rating: Medium
Financial data firm Moody’s lost 4.74% over the past week, shifting its Morningstar Rating to 4 stars from 3. Moody’s has climbed 1.04% over the past three months and has dropped 11.08% over the past year. The stock is trading at a 14% discount to its fair value estimate of $500 per share, with an Uncertainty Rating of Medium. Moody’s is a mid-core company with a wide economic moat.
DoorDash
- Morningstar Rating: ★★★★
- Fair Value Estimate: $205.00
- Uncertainty Rating: Very High
Internet retail company DoorDash dropped 2.89% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 0.71% over the past three months and 19.23% over the past year. The stock’s price is 22% below its fair value estimate of $205 per share, with an Uncertainty Rating of Very High. The mid-growth stock has a narrow economic moat.
American Electric Power Company
- Morningstar Rating: ★★★★
- Fair Value Estimate: $141.00
- Uncertainty Rating: Low
Following a 3.85% loss over the past week, regulated electric company American Electric saw its Morningstar Rating move to 4 stars from 3. American Electric has lost 2.98% over the past three months and has gained 27.05% over the past year. The mid-core stock has a narrow economic moat. American Electric is trading at an 11% discount to its fair value estimate of $141 per share, with an Uncertainty Rating of Low.
Nu Holdings
- Morningstar Rating: ★★★★
- Fair Value Estimate: $15.30
- Uncertainty Rating: High
Regional bank Nu dropped 11.67% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 27.53% over the past three months and 7.16% over the past year. The stock’s price is 20% below its fair value estimate of $15.30 per share, with an Uncertainty Rating of High. The large-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 do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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