41 New 4-Star Stocks This Week
Bank of America and Wells Fargo 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 is 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 Total Market Index rose 1.11% over the past week as of Sept. 25, leaving the overall US stock market moderately undervalued, hovering at an 8% discount to its fair value estimate on a market cap-weighted basis.
Of the 872 US-listed stocks covered by Morningstar analysts:
- 43% are undervalued, 38% are fairly valued, and 19% are overvalued.
- 41 are newly undervalued.
- 13 are newly overvalued.
- 10 moved from a 4-star rating to a 5-star rating.
- Zero 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
Bank of America BAC
- Morningstar Rating: ★★★★
- Fair Value Estimate: $66.00
- Uncertainty Rating: Medium
Diversified bank Bank of America lost 1.78% over the past week, shifting its Morningstar Rating to 4 stars from 3. Bank of America has dropped 2.06% over the past three months and has climbed 11.70% over the past year. The stock is trading at a 14% discount to its fair value estimate of $66 per share, with an Uncertainty Rating of Medium. Bank of America is a large-value company with a wide economic moat.
Wells Fargo WFC
- Morningstar Rating: ★★★★
- Fair Value Estimate: $93.00
- Uncertainty Rating: Medium
Diversified bank Wells Fargo dropped 3.66% over the past week. The company’s stock is down 1.53% over the past three months and is up 0.55% over the past year. The stock’s fair value estimate rose to $93 per share from $90 during the week. It ended the week trading at an 11% discount to its new fair value estimate, with an Uncertainty Rating of Medium. The large-value stock has a wide economic moat.
American Express AXP
- Morningstar Rating: ★★★★
- Fair Value Estimate: $341.00
- Uncertainty Rating: Medium
Credit services firm American Express lost 0.86% over the past week. American Express has dropped 9.56% over the past three months and 8.23% over the past year. The stock’s fair value estimate rose to $341 per share from $335 during the week. It ended the week trading at a 9% discount to its new fair value estimate, with an Uncertainty Rating of Medium. American Express is a large-value company with a wide economic moat.
Verizon Communications VZ
- Morningstar Rating: ★★★★
- Fair Value Estimate: $54.00
- Uncertainty Rating: Medium
Following a 2.10% loss over the past week, telecom services firm Verizon saw its Morningstar Rating move to 4 stars from 3. Verizon has gained 3.91% over the past three months and 16.04% over the past year. The large-value stock has a narrow economic moat. Verizon is trading at a 13% discount to its fair value estimate of $54 per share, with an Uncertainty Rating of Medium.
NextEra Energy NEE
- Morningstar Rating: ★★★★
- Fair Value Estimate: $88.00
- Uncertainty Rating: Medium
Regulated electric company NextEra lost 5.46% over the past week, shifting its Morningstar Rating to 4 stars from 3. NextEra has dropped 12.59% over the past three months and has climbed 4.83% over the past year. The stock is trading at a 14% discount to its fair value estimate of $88 per share, with an Uncertainty Rating of Medium. NextEra is a large-value company with 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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