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 July 17, eight stocks saw their ratings change to 4 stars, while five joined the 85 US-listed names in 5-star territory.

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

• ResMed RMD
• Pentair PNR
• StandardAero SARO
• CRISPR Therapeutics CRSP
• Intellia Therapeutics NTLA

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 fell 1.52% over the past week as of July 17, 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 877 US-listed stocks covered by Morningstar analysts:

• 34% are undervalued, 42% are fairly valued, and 23% are overvalued.
• Eight are newly undervalued.
• 11 are newly overvalued.
• Five moved from a 4-star rating to a 5-star rating.
• Five 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.
• 12 are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

ResMed RMD

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $290.00
• Uncertainty Rating: Medium

Following a 2.39% loss over the past week, medical supplies company ResMed saw its Morningstar Rating move to 5 stars from 4. ResMed has lost 12.51% over the past three months and 21.63% over the past year. The mid-core stock has a narrow economic moat. ResMed is trading at a 31% discount to its fair value estimate of $290 per share, with an Uncertainty Rating of Medium.

Pentair PNR

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $95.00
• Uncertainty Rating: Medium

Specialty industrial machinery firm Pentair lost 18.03% over the past week, shifting its Morningstar Rating to 5 stars from 4. Pentair has dropped 31.43% over the past three months and 40.88% over the past year. The stock is trading at a 34% discount to its fair value estimate of $95 per share, with an Uncertainty Rating of Medium. Pentair is a small-core company with a narrow economic moat.

StandardAero SARO

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $41.50
• Uncertainty Rating: Medium

Following a 4.30% loss over the past week, aerospace and defense company StandardAero saw its Morningstar Rating move to 5 stars from 4. StandardAero has lost 0.11% over the past three months and 13.13% over the past year. The small-growth stock has a narrow economic moat. StandardAero is trading at a 36% discount to its fair value estimate of $41.50 per share, with an Uncertainty Rating of Medium.

CRISPR Therapeutics CRSP

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

Biotechnology firm CRISPR dropped 10.44% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 17.61% over the past three months and 13.27% over the past year. The stock’s price is 55% below its fair value estimate of $106 per share, with an Uncertainty Rating of Very High. The mid-value stock has no economic moat.

Intellia Therapeutics NTLA

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $27.00
• Uncertainty Rating: Very High

Biotechnology firm Intellia lost 19.98% over the past week, shifting its Morningstar Rating to 5 stars from 4. Intellia has dropped 23.91% over the past three months and 3.85% over the past year. The stock is trading at a 58% discount to its fair value estimate of $27 per share, with an Uncertainty Rating of Very High. Intellia is a small-core company with no economic moat.