7 New 4-Star Stocks This Week

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Each 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 2, seven stocks saw their ratings change to 4 stars, while none joined the 81 US-listed names in 5-star territory

The five new 4-star stocks with the largest market capitalization are:

• T-Mobile TMUS
• Qualcomm QCOM
• Sysco SYY
• Biogen BIIB
• Qnity Electronics Q

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

—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 3.41% over the past week as of April 2, leaving the overall US stock market significantly undervalued, hovering at a 12% discount to its fair value estimate on a market-cap-weighted basis.

Of the 829 US-listed stocks covered by Morningstar analysts:

• 44% are undervalued, 40% are fairly valued, and 17% are overvalued.
• Seven are newly undervalued.
• Nine are newly overvalued.
• Zero moved from a 4-star rating to a 5-star rating.
• Three 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

T-Mobile

• Morningstar Rating: ★★★★
• Fair Value Estimate: $235.00
• Uncertainty Rating: Medium

Following a 4.47% loss over the past week, telecom services firm T-Mobile saw its Morningstar Rating move to 4 stars from 3. T-Mobile has gained 1.39% over the past three months and has lost 23.55% over the past year. The large-value stock has a narrow economic moat. T-Mobile is trading at a 14% discount to its fair value estimate of $235 per share, with an Uncertainty Rating of Medium.

Qualcomm

• Morningstar Rating: ★★★★
• Fair Value Estimate: $155.00
• Uncertainty Rating: High

Semiconductor company Qualcomm dropped 0.24% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 26.22% over the past three months and 6.92% over the past year. The stock’s price is 18% below its fair value estimate of $155 per share, with an Uncertainty Rating of High. The large-value stock has a narrow economic moat.

Sysco

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

Following a 12.35% loss over the past week, food distributor Sysco saw its Morningstar Rating move to 4 stars from 3. Sysco has lost 1.27% over the past three months and 2.22% over the past year. The mid-value stock has a wide economic moat. Sysco is trading at a 15% discount to its fair value estimate of $84 per share, with an Uncertainty Rating of Medium.

Biogen

• Morningstar Rating: ★★★★
• Fair Value Estimate: $220.00
• Uncertainty Rating: High

Drug manufacturer Biogen lost 3.54% over the past week, shifting its Morningstar Rating to 4 stars from 3. Biogen has dropped 0.27% over the past three months and has climbed 35.67% over the past year. The stock is trading at a 19% discount to its fair value estimate of $220 per share, with an Uncertainty Rating of High. Biogen is a mid-value company with a narrow economic moat.

Qnity Electronics

• Morningstar Rating: ★★★★
• Fair Value Estimate: $135.00
• Uncertainty Rating: High

Semiconductor equipment and materials firm Qnity climbed 4.27% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is up 37.21% over the past three months. The stock’s price is 14% below its fair value estimate of $135 per share, with an Uncertainty Rating of High. The mid-growth stock has a narrow economic moat.