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Market Update

New 5-Star Stocks

These names are all significantly undervalued by our standards after the market rout.

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Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.

Fueled by ongoing coronavirus concerns, the market experienced its worst session since 1987 on Monday, with the S&P 500 skidding nearly 12%.

Long-term investors often view volatility as their friend: A market downturn can provide a chance to increase our positions in existing holdings or initiate new positions in stocks we’ve been eyeing. In a lengthy and wide-ranging interview with CNBC in late February (as the market was down about 3%), Warren Buffett acknowledged that the coronavirus will have a near-term impact on companies that he owns, but he also noted that it likely won't make a difference when it comes to their 10- or 20-year outlooks. He added that if the market gives you an opportunity to buy something you like for far less than it was the day before, you're in luck.

Dozens of companies that our analysts cover edged into 5-star range yesterday--which means they're significantly undervalued by our measures. Don't think of this as a list of "buys," though. Instead, think of it as a collection of names to investigate further.

     Dig Deeper: The Morningstar Rating for Stocks Do’s and Don'ts

When bargain hunting, be sure to consider company fundamentals and valuations--but don't overlook your risk tolerance and time horizon, too.

Wide
Nike (NKE)
Polaris (PII)
Blackbaud (BLKB)
Magellan Midstream Partners (MMP)
Starbucks (SBUX)
Intel (INTC)
Salesforece.com (CRM)
McDonald’s (MCD)
CSX (CSX)
Medtronic PLC (MDT)
Yum Brands (YUM)
Unilever (UN)
Diageo PLC (DEO)
Reckitt Benckiser Group PLC (RBGLY)

Narrow
Broadcom (AVGO)
SS&C Technologies Holdings (SSNC)
NXP Semiconductors (NXPI)
Dunkin’ Brands Group (DNKN)
Splunk (SPLK)
Pentair PLC (PNR)
Diamondback Energy (FANG)
MPLX (MPLX)
Liberty Forumula One Group (FWONA) (FWONK)
BRP (DOOO)
Ring Central (RNG)
CNH Industrial (CNHI)
Viper Energy Partners (VNOM)
Workiva (WK)
Summit Materials (SUM)
Pearson PLC (PSO)
Basf SE (BASFY)
Fomento Economico Mexicano SAB de CV (FMX)
America Movil SAB de CV (AMOV)
KT Corp (KT)
Royal Philips NV (PHG)
Koninklijke KPN NV (KKPNY)
First Energy (FE)
Tallgrass Energy LP (TGE)
Fortive (FTV)
Valvoline (VVV)
Fox Corp (FOX)
Pinterest (PINS)
Myriad Genetics (MYGN)
Asbury Automotive Group (ABG)
Sealed Air (SEE)
AutoNation (AN)
Cognizant Technology Solutions (CTSH)
Las Vegas Sands (LVS)
Citigroup (C)
Laboratory Corp. of America Holdings (LH)
New Jersey Resources (NJR)
Pinnacle West Capital Group (PNW)
Anthem (ANTM)
Anixter International (AXE)
Sysco (SYY)
ONEOK (OKE)
NiSource (NI)
Entergy (ETR)
Edison International (EIX)
ETrade (ETFC)
Pioneer National Resources (PXD)
Sempra Energy (SRE)
Oshkosh (OSK)
UBS Group (UBS)
John Bean Technologies (JBT)

None
Technip FMC PLC (FTI)
Oasis Petroleum (OAS)
Caesar’s Entertainment (CZR)
Laredo Petroleum (LPI)
Five Below (FIVE)
RH (RH)
FireEye (FEYE)
Parsley Energy (PE)
Hewlett Packard Enterprises (HPE)
Canon (CJ)
Barclays PLC (BCS)
BNP Paribas (BNPQY)
Gildan Activewear (GIL)
Magna International (MGA)
First Solar (FSLR)
Kirby Corp (KEX)
Lennar (LEN)
AECOM (ACM)
Farfetch (FTCH)
PNC Financial (PNC)
Regency Centers (REG)
Toll Brothers (TOL)
Federal Realty Investment Trust (FRT)
Host Hotels & Resorts (HST)
Mohawk Industries (MHK)
Steel Dynamics (STLD)
WW International (WW)
Manulife Financial (MFC)


Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.