7 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 May 1, 21 stocks saw their ratings change to 4 stars, while seven joined the 73 US-listed names in 5-star territory.

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

• Comcast CMCSA
• Becton Dickinson BDX
• GE HealthCare Technologies GEHC
• Zimmer Biomet ZBH
• Insulet PODD

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 rose 0.9% over the past week as of May 1, leaving the overall US stock market moderately undervalued, hovering at a 6.0% discount to its fair value estimate on a market cap-weighted basis.

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

• 38% are undervalued, 41% are fairly valued, and 21% are overvalued.
• 21 are newly undervalued.
• 12 are newly overvalued.
• Seven moved from 4-star to 5-star ratings.
• Six 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.
• 12 are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

Comcast

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $41.00
• Uncertainty Rating: Medium

Telecom services firm Comcast dropped 1.34% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 7.53% over the past three months and 11.86% over the past year. The stock’s price is 34% below its fair value estimate of $41 per share, with an Uncertainty Rating of Medium. The large-value stock has a narrow economic moat.

Becton Dickinson

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $225.00
• Uncertainty Rating: Medium

Following a 1.86% loss over the past week, medical supplies company Becton Dickinson saw its Morningstar Rating move to 5 stars from 4. Becton Dickinson has lost 10.79% over the past three months and has gained 8.90% over the past year. The mid-value stock has a narrow economic moat. Becton Dickinson is trading at a 34% discount to its fair value estimate of $225, with an Uncertainty Rating of Medium.

GE HealthCare Technologies

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $88.00
• Uncertainty Rating: Medium

Medical devices company GE HealthCare dropped 11.33% over the past week. The company’s stock is down 22.68% over the past three months and 9.65% over the past year. The stock’s fair value estimate was cut to $88 per share from $98 during the week. It ended the week trading at a 31% discount to its new fair value estimate, with an Uncertainty Rating of Medium. The mid-value stock has a wide economic moat.

Zimmer Biomet

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $130.00
• Uncertainty Rating: Medium

Medical devices company Zimmer Biomet lost 9.16% over the past week, shifting its Morningstar Rating to 5 stars from 4. Zimmer Biomet has dropped 4.54% over the past three months and 17.74% over the past year. The stock is trading at a 36% discount to its fair value estimate of $130 per share, with an Uncertainty Rating of Medium. Zimmer Biomet is a mid-value company with a wide economic moat.

Insulet

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $314.00
• Uncertainty Rating: High

Following a 7.66% loss over the past week, medical devices company Insulet saw its Morningstar Rating move to 5 stars from 4. Insulet has lost 31.57% over the past three months and 30.05% over the past year. The small-growth stock has a narrow economic moat. Insulet is trading at a 44% discount to its fair value estimate of $314 per share, with an Uncertainty Rating of High.