7 New 5-Star Stocks This Week

Every Monday, get Morningstar’s insights on company news, the latest stock market trends, and in-depth company reports from our analysts. Sign up for our Stock Strategist newsletter here.

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 Feb. 13, 22 stocks saw their ratings change to 4 stars, while seven joined the 66 US-listed names in 5-star territory.

The five new 5-star stocks with the largest market capitalization are:

• Salesforce CRM
• S&P Global SPGI
• IQVIA IQV
• Dassault Systemes DASTY
• Molina Healthcare MOH

The full list of new 5-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 fell 1.29% over the past week as of Feb. 13, 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 828 US-listed stocks covered by Morningstar analysts:

• 35% are undervalued, 39% are fairly valued, and 26% are overvalued.
• 22 are newly undervalued.
• 25 are newly overvalued.
• Seven moved from a 4-star rating to a 5-star rating.
• Seven 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.
• 32 are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

Salesforce

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $325.00
• Uncertainty Rating: High

Following a 0.85% loss over the past week, software application firm Salesforce saw its Morningstar Rating move to 5 stars from 4. Salesforce has lost 20.96% over the past three months and 42.10% over the past year. The large-value stock has a wide economic moat. Salesforce is trading at a 42% discount to its fair value estimate of $325 per share, with an Uncertainty Rating of High.

S&P Global

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $570.00
• Uncertainty Rating: Low

Financial data firm S&P Global lost 6.77% over the past week, shifting its Morningstar Rating to 5 stars from 4. S&P Global has dropped 18.42% over the past three months and 23.93% over the past year. The stock is trading at a 28% discount to its fair value estimate of $570 per share, with an Uncertainty Rating of Low. S&P Global is a large-core company with a wide economic moat.

IQVIA

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $268.00
• Uncertainty Rating: Medium

Following a 10.96% loss over the past week, diagnostics and research firm IQVIA saw its Morningstar Rating move to 5 stars from 4. IQVIA has lost 25.32% over the past three months and 14.85% over the past year. The mid-core stock has a narrow economic moat. IQVIA is trading at a 38% discount to its fair value estimate of $268 per share, with an Uncertainty Rating of Medium.

Dassault Systemes

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $31.70
• Uncertainty Rating: Medium

Software application firm Dassault dropped 20.07% over the past week. The company’s stock is down 24.87% over the past three months and 49.18% over the past year. The stock’s fair value estimate was cut to $31.70 per share from $37.70 during the week. It ended the week trading at a 34% discount to its new fair value estimate, with an Uncertainty Rating of Medium. The large-core stock has a wide economic moat.

Molina Healthcare

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $262.00
• Uncertainty Rating: Very High

Healthcare plans company Molina gained 2.76% over the past week, shifting its Morningstar Rating to 5 stars from 4. Molina has dropped 2.26% over the past three months and 49.99% over the past year. The stock is trading at a 48% discount to its fair value estimate of $262 per share, with an Uncertainty Rating of Very High. Molina is a small-value company with a narrow economic moat.