This list contains all stocks that are currently rated 5 stars. Here’s what you need to know:
- The stock star rating is calculated by comparing a stock’s current market price with Morningstar’s estimate of the stock’s fair value.
- The further the market price is below the fair value, the higher the star rating. A 5-star rating means the stock is trading meaningfully below fair value.
- Morningstar’s rating system also factors in an uncertainty adjustment (known as the Fair Value Uncertainty rating). As the Uncertainty rating goes up, so does the discount we require for a company to earn a 5-star rating, given the lower confidence in the precision of our fair value estimate.