11 New 4-Star Stocks

Each week, we screen the US-listed stocks under Morningstar’s coverage for newly undervalued names.

For the week ended Nov. 8, 11 stocks dropped into undervalued territory, meaning their Morningstar Ratings changed to 4 or 5 stars. Stocks rated 3 stars are fairly valued according to Morningstar analysts, while those rated 1 or 2 stars are overvalued.

The full table of newly undervalued stocks can be found at the end of this story. The 10 with the largest market capitalization are:

• AstraZeneca AZN
• TotalEnergies TTE
• American Tower AMT
• Banco Bradesco BBD
• Teva Pharmaceutical Industries TEVA
• Conagra Brands CAG
• Exact Sciences EXAS
• Teleflex TFX
• Sunrun RUN
• Marqeta MQ

All data in this article is sourced from Morningstar Direct.

New 4-Star Stocks for the Week Ended Nov. 8

The Morningstar US Market Index rose 4.94% over the past week, leaving the overall US stock market significantly overvalued, hovering at an 11% premium to its fair value estimate on a cap-weighted basis.

Of the 888 US-listed stocks covered by Morningstar analysts:

• 31% are undervalued, 40% are fairly valued, and 29% are overvalued.
• 11 are newly undervalued.
• 41 are newly overvalued.
• Six moved from a 4-star rating to a 5-star rating.
• Eight moved from a 5-star rating to a 4-star rating.
• Zero jumped from a 3-star rating to a 5-star rating.
• 19 are no longer undervalued.

Morningstar analysts assign every stock under their coverage a fair value estimate, which is an intrinsic measure of the stock’s worth, and an Uncertainty Rating, which captures the range of potential outcomes for that estimate. A higher Uncertainty Rating equates to a larger range of prices considered fairly valued. These two metrics and the stock’s price determine its Morningstar Rating.

Metrics for this Week’s New 4-Star Stocks

AstraZeneca

• Morningstar Rating: 4 stars
• One-Week Return: -9.70%

Drug manufacturer AstraZeneca is down 20.72% over the past three months and up 3.70% over the past year. The stock’s price is 17% below its fair value estimate of $78 per share, with an Uncertainty Rating of Medium. The large-growth stock has a wide moat.

TotalEnergies

• Morningstar Rating: 4 stars
• One-Week Return: -1.98%

Oil and gas firm TotalEnergies has dropped 7.11% over the past three months and 0.54% over the past year. The stock is trading at an 18% discount to its fair value estimate of $75 per share, with an Uncertainty Rating of High. TotalEnergies is a large-value company with no moat.

American Tower

• Morningstar Rating: 4 stars
• One-Week Return: -4.48%

Specialty REIT American Tower is down 9.09% over the past three months and up 13.02% over the past year. The stock’s price is 12% below its fair value estimate of $230 per share, with an Uncertainty Rating of Medium. The large-core stock has a narrow moat.

Banco Bradesco

• Morningstar Rating: 4 stars
• One-Week Return: -2.36%

Regional bank Bradesco has lost 7.41% over the past three months and 17.34% over the past year. The large-value stock has no moat. Bradesco is trading at a 19% discount to its fair value estimate of $2.90 per share, with an Uncertainty Rating of High.

Teva Pharmaceutical Industries

• Morningstar Rating: 4 stars
• One-Week Return: -7.26%

Drug manufacturer Teva has dropped 0.29% over the past three months and climbed 86.99% over the past year. Teva’s fair value estimate rose to $21 per share from $17 during the week. The stock ended the week trading at a 19% discount to its new fair value estimate, with an Uncertainty Rating of High. Teva is a large-value company with no moat.

Conagra Brands

• Morningstar Rating: 4 stars
• One-Week Return: -1.83%

Packaged foods company Conagra has lost 5.00% over the past three months and gained 7.38% over the past year. The mid-value stock has no moat. Conagra is trading at a 14% discount to its fair value estimate of $33 per share, with an Uncertainty Rating of Medium.

Exact Sciences

• Morningstar Rating: 4 stars
• One-Week Return: -26.25%

Diagnostics and research firm Exact Sciences has dropped 10.09% over the past three months and 18.08% over the past year. The fair value estimate for Exact Sciences was cut to $68 per share from $78 during the week. It ended the week trading at a 24% discount to its new fair value estimate, with an Uncertainty Rating of Very High. Exact Sciences is a mid-growth company with no moat.

Teleflex

• Morningstar Rating: 4 stars
• One-Week Return: -7.41%

Medical supplies company Teleflex has lost 14.86% over the past three months and 1.86% over the past year. The small-core stock has no moat. Teleflex is trading at a 13% discount to its fair value estimate of $225 per share, with an Uncertainty Rating of Medium.

Sunrun

• Morningstar Rating: 4 stars
• One-Week Return: -30.69%

Solar company Sunrun has dropped 45.67% over the past three months and 2.11% over the past year. The stock trades at a 32% discount to its fair value estimate of $15 per share, with an Uncertainty Rating of Very High. Sunrun is a small-core company with no moat.

Marqeta

• Morningstar Rating: 4 stars
• One-Week Return: -36.07%

Software infrastructure firm Marqeta is down 30.09% over the past three months and 41.10% over the past year. Marqeta’s fair value was cut to $6 per share from $7 during the week. The stock ended the week trading at a 38% discount to its new fair value estimate, with an Uncertainty Rating of Very High. The small-value stock has no moat.