30 New 4-Star Stocks This Week
Morningstar identified 30 US-listed stocks as newly undervalued, including ServiceNow (NOW), Booking Holdings (BKNG), British American Tobacco (BTI), Stryker (SYK), and General Dynamics (GD). These stocks now have a 4-star rating, with prices below their fair value estimates. The US stock market is moderately undervalued, according to Morningstar.
How this was made
The 30-second read
Why it matters
The upgrades signal potential buying opportunities for value investors, though high uncertainty for some names tempers enthusiasm.
Market read
The list may drive short‑term inflows into the highlighted stocks and affect sector weightings in value‑oriented portfolios.
What to watch
High uncertainty ratings for ServiceNow and Booking suggest earnings volatility that could offset valuation appeal.
Background
Morningstar’s weekly screen identifies newly undervalued stocks based on price relative to fair‑value estimates and assigns 4‑star ratings.
Ticker impact
ServiceNow was upgraded to a 4‑star Morningstar rating after a 6.18% weekly drop, indicating it is now considered undervalued.
Moderate upside if valuation reverts.
Rating upgrade signals undervaluation; price may rise toward fair value.
Booking Holdings received a 4‑star rating after a 9.80% weekly decline, placing it 20% below its fair‑value estimate.
Potential rebound toward fair value.
Rating upgrade combined with discount suggests upside potential.
British American Tobacco was upgraded to a 4‑star rating, trading 12% below its fair‑value estimate after a modest weekly decline.
Limited upside given modest discount.
Small price move and modest discount limit upside.
Stryker moved to a 4‑star rating after a 9.10% weekly loss, now 13% below its fair‑value estimate.
Possible recovery toward fair value.
Rating upgrade plus discount suggests upside potential.
General Dynamics received a 4‑star rating after a 0.97% weekly decline, trading 13% below its fair‑value estimate.
Modest upside potential.
Small price move and modest discount limit impact.
Market effects
Highlights undervalued opportunities across software, travel, tobacco, medical devices, and defense sectors.
U.S. and global equity markets may see modest buying pressure in the listed sectors.
Rating changes could influence portfolio rebalancing for value‑focused funds worldwide.
Counterpoint
Rating upgrades may be premature if broader market sentiment remains bearish, limiting upside.
Key entities
- Research ProviderMorningstar
Provides rating methodology and fair‑value estimates.
