9 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 May 8, 25 stocks saw their ratings change to 4 stars, while nine joined the 78 US-listed names in 5-star territory.

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

• Boston Scientific BSX
• PayPal Holdings PYPL
• LPL Financial Holdings LPLA
• Tractor Supply TSCO
• The Mosaic Company MOS

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 2.20% over the past week as of May 8, leaving the overall US stock market moderately undervalued, hovering at a 5% discount to its fair value estimate on a market cap-weighted basis.

Of the 871 US-listed stocks covered by Morningstar analysts:

• 38% are undervalued, 41% are fairly valued, and 21% are overvalued.
• 25 are newly undervalued.
• 18 are newly overvalued.
• Nine moved from a 4-star rating to a 5-star rating.
• Four moved from a 5-star rating to a 4-star rating.
• Among the newly undervalued stocks, zero jumped from a 3-star rating to a 5-star rating.
• 20 are no longer undervalued.

Metrics for This Week’s New 5-Star Stocks

Boston Scientific BSX

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $81
• Uncertainty Rating: Medium

Medical devices company Boston Scientific lost 4.55% over the past week, shifting its Morningstar Rating to 5 stars from 4. Boston Scientific has dropped 29.29% over the past three months and 47.79% over the past year. The stock is trading at a 33% discount to its fair value estimate of $81, with an Uncertainty Rating of Medium. Boston Scientific is a large-value company with a narrow economic moat.

PayPal Holdings PYPL

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $80
• Uncertainty Rating: High

Following a 10.05% loss over the past week, credit services firm PayPal Holdings saw its Morningstar Rating move to 5 stars from 4. PayPal Holdings has gained 12.58% over the past three months and has lost 35.28% over the past year. The mid-value stock has a narrow economic moat. PayPal Holdings is trading at a 43% discount to its fair value estimate of $80, with an Uncertainty Rating of High.

LPL Financial Holdings LPLA

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $542
• Uncertainty Rating: High

Capital markets company LPL Financial Holdings lost 4.74% over the past week, shifting its Morningstar Rating to 5 stars from 4. LPL Financial Holdings has dropped 21.12% over the past three months and 10.16% over the past year. The stock is trading at a 44% discount to its fair value estimate of $542, with an Uncertainty Rating of High. LPL Financial Holdings is a mid-growth company with a wide economic moat.

Tractor Supply TSCO

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $48
• Uncertainty Rating: Medium

Following a 9.40% loss over the past week, specialty retail firm Tractor Supply saw its Morningstar Rating move to 5 stars from 4. Tractor Supply has lost 44.64% over the past three months and 39.36% over the past year. The mid-value stock has a wide economic moat. Tractor Supply is trading at a 36% discount to its fair value estimate of $48, with an Uncertainty Rating of Medium.

The Mosaic Company MOS

• Morningstar Rating: ★★★★★
• Fair Value Estimate: $40
• Uncertainty Rating: High

Agricultural inputs company The Mosaic Company dropped 4.15% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 21.78% over the past three months and 29.10% over the past year. The stock’s price is 45% below its fair value estimate of $40, with an Uncertainty Rating of High. The small-value stock has no economic moat.