5 New 5-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 April 24, 10 stocks saw their ratings change to 4 stars, while five joined the 72 US-listed names in 5-star territory.

The five new 5-star stocks, ordered by market capitalization, are:

• Danaher DHR
• Cognizant Technology Solutions CTSH
• Check Point Software Technologies CHKP
• Magnum Ice Cream MICC
• CRISPR Therapeutics CRSP

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 rose 0.48% over the past week as of April 24, leaving the overall US stock market moderately undervalued, hovering at a 5.00% discount to its fair value estimate on a market cap-weighted basis.

Of the 872 US-listed stocks covered by Morningstar analysts:

• 37% are undervalued, 41% are fairly valued, and 22% are overvalued.
• 10 are newly undervalued.
• 14 are newly overvalued.
• Five moved from 4-star to 5-star ratings.
• Four moved from 5-star to 4-star ratings.
• None of the newly undervalued stocks jumped from a 3-star rating to a 5-star rating.
• 18 are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

Danaher

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $270.00
• Uncertainty Rating: Medium

Following a 8.99% loss over the past week, diagnostics and research firm Danaher saw its Morningstar Rating move to 5 stars from 4. Danaher has lost 24.41% over the past three months and 9.17% over the past year. The large-value stock has a wide economic moat. Danaher is trading at a 34% discount to its fair value estimate of $270 per share, with an Uncertainty Rating of Medium.

Cognizant Technology Solutions

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $84.00
• Uncertainty Rating: Medium

Information technology services company Cognizant lost 10.10% over the past week, shifting its Morningstar Rating to 5 stars from 4. Cognizant has dropped 34.21% over the past three months and 22.24% over the past year. The stock is trading at a 34% discount to its fair value estimate of $84 per share, with an Uncertainty Rating of Medium. Cognizant is a mid-value company with a narrow economic moat.

Check Point Software Technologies

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $201.00
• Uncertainty Rating: Medium

Software infrastructure firm Check Point dropped 1.29% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 25.69% over the past three months and 35.53% over the past year. The stock’s price is 33% below its fair value estimate of $201 per share, with an Uncertainty Rating of Medium. The mid-core stock has a narrow economic moat.

Magnum Ice Cream Company

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $19.80
• Uncertainty Rating: Medium

Packaged foods company Magnum lost 9.26% over the past week, shifting its Morningstar Rating to 5 stars from 4. Magnum has dropped 21.44% over the past three months. The stock is trading at a 33% discount to its fair value estimate of $19.80 per share, with an Uncertainty Rating of Medium. Magnum is a mid-value company with a wide economic moat.

CRISPR Therapeutics

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $106.00
• Uncertainty Rating: Very High

Following a 15.87% loss over the past week, biotechnology firm CRISPR saw its Morningstar Rating move to 5 stars from 4. CRISPR has lost 12.13% over the past three months and has gained 24.74% over the past year. The mid-value stock has no economic moat. CRISPR is trading at a 54% discount to its fair value estimate of $106 per share, with an Uncertainty Rating of Very High.