11 New 4-Star Stocks This Week

Every Monday morning, 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 Sept. 4, 11 stocks saw their ratings change to 4 stars, while five joined the 45 US-listed names in 5-star territory

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

• ASML ASML
• Synopsys SNPS
• CRH CRH
• Autodesk ADSK
• Magna International MGA

The full list of new 4-star stocks is 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 Total Market Index rose 0.11% over the past week as of Sept. 4, leaving the overall US stock market moderately undervalued, hovering at a 7% discount to its fair value estimate on a market cap-weighted basis.

Of the 880 US-listed stocks covered by Morningstar analysts:

• 33% are undervalued, 46% are fairly valued, and 21% are overvalued.
• 11 are newly undervalued.
• Four are newly overvalued.
• Five moved from a 4-star rating to a 5-star rating.
• Five 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.
• 13 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

ASML ASML

• Morningstar Rating: ★★★★
• Fair Value Estimate: $2,050.00
• Uncertainty Rating: High

Following a 1.10% gain over the past week, semiconductor equipment and materials firm ASML saw its Morningstar Rating move to 4 stars from 3. ASML has lost 2.29% over the past three months and has gained 129.13% over the past year. The large-growth stock has a wide economic moat. ASML is trading at a 16% discount to its fair value estimate of $2,050 per share, with an Uncertainty Rating of High.

Synopsys SNPS

• Morningstar Rating: ★★★★
• Fair Value Estimate: $520.00
• Uncertainty Rating: High

Software infrastructure firm Synopsys lost 11.02% over the past week, shifting its Morningstar Rating to 4 stars from 3. Synopsys has dropped 20.35% over the past three months and 34.57% over the past year. The stock is trading at a 24% discount to its fair value estimate of $520 per share, with an Uncertainty Rating of High. Synopsys is a mid-growth company with a wide economic moat.

CRH CRH

• Morningstar Rating: ★★★★
• Fair Value Estimate: $105.00
• Uncertainty Rating: Medium

Building materials firm CRH dropped 1.67% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 11.20% over the past three months and 14.29% over the past year. The stock’s price is 10% below its fair value estimate of $105 per share, with an Uncertainty Rating of Medium. The mid-value stock has a narrow economic moat.

Autodesk ADSK

• Morningstar Rating: ★★★★
• Fair Value Estimate: $268.00
• Uncertainty Rating: Medium

Following a 16.40% loss over the past week, software application firm Autodesk saw its Morningstar Rating move to 4 stars from 3. Autodesk has lost 6.74% over the past three months and 31.89% over the past year. The mid-growth stock has a wide economic moat. Autodesk is trading at a 19% discount to its fair value estimate of $268 per share, with an Uncertainty Rating of Medium.

Magna International MGA

• Morningstar Rating: ★★★★
• Fair Value Estimate: $80
• Uncertainty Rating: High

Auto parts firm Magna gained 4.57% over the past week, shifting its Morningstar Rating to 4 stars from 3. Magna has climbed 1.77% over the past three months and 56.93% over the past year. The stock is trading at a 14% discount to its fair value estimate of $80 per share, with an Uncertainty Rating of High. Magna is a mid-value company with no economic moat.