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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 Sept. 11, 30 stocks saw their ratings change to 4 stars, while four joined the 47 US-listed names in 5-star territory.
The four new 5-star stocks, ordered by market capitalization, are:
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 Total Market Index fell 0.91% over the past week as of Sept. 11, 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 880 US-listed stocks covered by Morningstar analysts:
- 36% are undervalued, 44% are fairly valued, and 20% are overvalued.
- 30 are newly undervalued.
- Six are newly overvalued.
- Four moved from a 4-star rating to a 5-star rating.
- Two 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.
- Three are no longer undervalued.
Metrics for This Week’s New 5-Star Stocks
National Grid NGG
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $98
- Uncertainty Rating: Low
Regulated electric company National Grid dropped 1.61% over the past week. The company’s stock is down 5.72% over the past three months and is up 12.60% over the past year. The stock’s fair value estimate rose to $98 from $96.50 during the week. It ended the week trading at a 22% discount to its new fair value estimate, with an Uncertainty Rating of Low. The large-value stock has a narrow economic moat.
Thomson Reuters TRI
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $146
- Uncertainty Rating: Medium
Specialty business services firm Thomson Reuters lost 7.88% over the past week, shifting its Morningstar Rating to 5 stars from 4. Thomson Reuters has climbed 22.07% over the past three months and has dropped 42.45% over the past year. The stock is trading at a 33% discount to its fair value estimate of $146, with an Uncertainty Rating of Medium. Thomson Reuters is a large-core company with a narrow economic moat.
Coupang CPNG
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $25.80
- Uncertainty Rating: High
Following a 1.11% loss over the past week, internet retail company Coupang saw its Morningstar Rating move to 5 stars from 4. Coupang has lost 12.35% over the past three months and 53.41% over the past year. The mid-growth stock has a narrow economic moat. Coupang is trading at a 41% discount to its fair value estimate of $25.80, with an Uncertainty Rating of High.
CoStar Group CSGP
- Morningstar Rating: ★★★★★
- Fair Value Estimate: $53
- Uncertainty Rating: High
Real estate company CoStar Group dropped 1.46% over the past week, bumping its Morningstar Rating to 5 stars from 4. The company’s stock is down 6.71% over the past three months and 65.01% over the past year. The stock’s price is 43% below its fair value estimate of $53, with an Uncertainty Rating of High. The small-growth stock has a narrow economic moat.
This article was generated with the help of automation and reviewed by Morningstar editors.
Learn more about Morningstar’s use of automation.
