5 New 5-Star Stocks This Week
Morningstar upgraded five US-listed stocks to 5-star ratings, indicating undervaluation. The stocks are PG&E (PCG), Edison International (EIX), Aurora Innovation (AUR), Pentair (PNR), and PVH (PVH). PG&E and Edison saw significant weekly declines, while Aurora rose. All trade below their fair value estimates, with discounts ranging from 30% to 47%.
How this was made

The 30-second read
Why it matters
Five companies received 5‑star ratings, indicating they trade well below fair value and may present buying opportunities.
Market read
The rating upgrades could drive short‑term buying pressure and influence sector sentiment across utilities, industrials and consumer goods.
What to watch
Potential regulatory scrutiny for utilities and supply‑chain constraints for auto‑parts could limit upside.
Background
Morningstar’s weekly rating update identifies newly undervalued US stocks based on price versus fair‑value estimates.
Ticker impact
Morningstar upgraded PCG to a 5‑star rating after a 13.86% price drop, showing it now trades 30% below fair value.
Expect price to rally toward fair value over the next weeks.
The 5‑star rating and large discount provide a clear buying catalyst.
EIX received a 5‑star Morningstar rating after a 19.10% decline, now 30% under its $81 fair value estimate.
Potential upside as the stock re‑prices toward fair value.
Significant price drop combined with a top rating suggests upside potential.
Aurora Innovation (AUR) was raised to a 5‑star rating after an 8.75% weekly gain, now 47% below its $12 fair value.
May see further upside if execution improves.
Very high uncertainty tempers confidence despite rating boost.
Pentair (PNR) earned a 5‑star rating after a 2.37% loss, trading 34% below its $91 fair value.
Likely modest rally toward fair value.
Small price decline plus top rating suggests upside potential.
PVH was upgraded to a 5‑star rating after a 1.88% drop, now 42% under its $128 fair value estimate.
Potential price recovery toward fair value.
Modest decline with top rating may draw value buyers.
Market effects
Utility, auto parts, industrial and apparel sectors may see increased buying interest.
U.S. equity market could receive a modest lift from value‑oriented upgrades.
Highlights broader undervaluation trends in US equities for global investors.
Counterpoint
Some investors may view the steep discounts as signs of deeper operational or regulatory risks.
Key entities
- companyPG&E Corp
US-listed utility (ticker PCG)
- companyEdison International
US-listed utility (ticker EIX)
- companyAurora Innovation
US-listed auto‑parts firm (ticker AUR)
- companyPentair
US-listed industrial machinery firm (ticker PNR)
- companyPVH Corp
US-listed apparel manufacturer (ticker PVH)


