10 New 4-Star Stocks This Week

Every Monday, get Morningstar’s insights on company news, the latest stock market trends, and in-depth company reports from our analysts. Sign up for our Stock Strategist newsletter here.

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 July 10, 10 stocks saw their ratings change to 4 stars, while four joined the 85 US-listed names in 5-star territory.

The five new 4-star stocks with the largest market capitalization are:

• Procter & Gamble PG
• Amrize AMRZ
• Synchrony Financial SYF
• International Flavors & Fragrances IFF
• Hormel Foods HRL

The full list of new 4-star stocks can be found at the bottom of this story. 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 Market Index rose 1.08% over the past week as of July 10, leaving the overall US stock market moderately undervalued, hovering at a 5% discount to its fair value estimate on a market-cap-weighted basis.

Of the 879 US-listed stocks covered by Morningstar analysts:

• 35% are undervalued, 42% are fairly valued, and 23% are overvalued.
• 10 are newly undervalued.
• 10 are newly overvalued.
• Four moved from a 4-star rating to a 5-star rating.
• Four moved from a 5-star rating to a 4-star rating.
• None of the newly undervalued stocks jumped from a 3-star rating to a 5-star rating.
• 16 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Procter & Gamble PG

• Morningstar Rating: ★★★★
• Fair Value Estimate: $155.00
• Uncertainty Rating: Low

Household and personal products company Procter & Gamble lost 2.89% over the past week. Procter & Gamble has climbed 2.04% over the past three months and has dropped 4.59% over the past year. The stock’s fair value estimate rose to $155 per share from $148 during the week. It ended the week trading at a 5% discount to its new fair value estimate, with an Uncertainty Rating of Low. Procter & Gamble is a large-value company with a wide economic moat.

Amrize AMRZ

• Morningstar Rating: ★★★★
• Fair Value Estimate: $59.00
• Uncertainty Rating: Medium

Following a 5.39% loss over the past week, building materials firm Amrize saw its Morningstar Rating move to 4 stars from 3. Amrize has lost 11.65% over the past three months and has gained 0.51% over the past year. The large-growth stock has a narrow economic moat. Amrize is trading at a 14% discount to its fair value estimate of $59 per share, with an Uncertainty Rating of Medium.

Synchrony Financial SYF

• Morningstar Rating: ★★★★
• Fair Value Estimate: $87.00
• Uncertainty Rating: High

Credit services firm Synchrony lost 5.10% over the past week, shifting its Morningstar Rating to 4 stars from 3. Synchrony has climbed 0.45% over the past three months and 3.51% over the past year. The stock is trading at a 17% discount to its fair value estimate of $87 per share, with an Uncertainty Rating of High. Synchrony is a mid-value company with no economic moat.

International Flavors & Fragrances IFF

• Morningstar Rating: ★★★★
• Fair Value Estimate: $90.00
• Uncertainty Rating: Medium

Following a 7.52% loss over the past week, specialty chemicals company International Flavors & Fragrances saw its Morningstar Rating move to 4 stars from 3. International Flavors & Fragrances has gained 7.47% over the past three months and 3.62% over the past year. The mid-core stock has a narrow economic moat. International Flavors & Fragrances is trading at a 14% discount to its fair value estimate of $90 per share, with an Uncertainty Rating of Medium.

Hormel Foods HRL

• Morningstar Rating: ★★★★
• Fair Value Estimate: $28.00
• Uncertainty Rating: Medium

Packaged foods company Hormel lost 1.08% over the past week, shifting its Morningstar Rating to 4 stars from 3. Hormel has climbed 20.19% over the past three months and has dropped 17.68% over the past year. The stock is trading at a 12% discount to its fair value estimate of $28 per share, with an Uncertainty Rating of Medium. Hormel is a small-value company with a narrow economic moat.