13 New 4-Star Stocks This Week

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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 Morningstar Ratings. For the week ended Oct. 9, 13 stocks saw their ratings change to 4 stars, while five joined the 77 US-listed names in 5-star territory.

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

• Marvell Technology MRVL
• Bristol-Myers Squibb BMY
• U.S. Bancorp USB
• Simon Property Group SPG
• Devon Energy DVN

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 fair value estimate—Morningstar’s estimate of its intrinsic worth—and its Uncertainty Rating, 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 1.05% over the past week as of Oct. 9, leaving the overall US stock market moderately undervalued, hovering at a 6% discount to its fair value estimate on a market cap-weighted basis.

Of the 867 US-listed stocks covered by Morningstar analysts:

• 45% are undervalued, 37% are fairly valued, and 18% are overvalued.
• 13 are newly undervalued.
• 11 are newly overvalued.
• Five moved from a 4-star rating to a 5-star rating.
• Three 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.
• 17 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Marvell Technology MRVL

• Morningstar Rating: ★★★★
• Fair Value: $360.00
• Uncertainty Rating: High

Semiconductor company Marvell gained 1.12% over the past week. Marvell has climbed 13.21% over the past three months and 204.29% over the past year. The stock’s fair value estimate rose to $360 per share from $300 during the week. It ended the week trading at a 24% discount to its new fair value estimate, with an Uncertainty Rating of High. Marvell is a large-growth company with a narrow economic moat.

Bristol-Myers Squibb BMY

• Morningstar Rating: ★★★★
• Fair Value: $70.00
• Uncertainty Rating: Medium

Drug manufacturer Bristol-Myers Squibb dropped 3.32% over the past week, bumping its Morningstar Rating to 4 stars from 3. The stock is up 3.09% over the past three months and 38.17% over the past year. The stock’s price is 16% below its fair value estimate of $70 per share, with an Uncertainty Rating of Medium. The large-value stock has a wide economic moat.

US Bancorp USB

• Morningstar Rating: ★★★★
• Fair Value: $65.00
• Uncertainty Rating: Medium

Following a 0.75% loss over the past week, regional bank US Bancorp saw its Morningstar Rating move to 4 stars from 3. US Bancorp has lost 6.92% over the past three months and has gained 25.82% over the past year. The mid-value stock has a wide economic moat. US Bancorp is trading at a 12% discount to its fair value estimate of $65 per shares, with an Uncertainty Rating of Medium.

Simon Property Group SPG

• Morningstar Rating: ★★★★
• Fair Value: $229.00
• Uncertainty Rating: Medium

Retail REIT Simon Property lost 0.76% over the past week, shifting its Morningstar Rating to 4 stars from 3. Simon Property has dropped 8.24% over the past three months and has climbed 16.63% over the past year. The stock is trading at a 13% discount to its fair value estimate of $229 per share, with an Uncertainty Rating of Medium. Simon Property is a mid-core company with no economic moat.

Devon Energy DVN

• Morningstar Rating: ★★★★
• Fair Value: $62.00
• Uncertainty Rating: High

Oil and gas exploration and production company Devon climbed 1.28% over the past week. The company’s stock is up 15.57% over the past three months and 44.10% over the past year. The stock’s fair value estimate rose to $62 per share from $56 during the week. It ended the week trading at a 22% discount to its new fair value estimate, with an Uncertainty Rating of High. The mid-value stock has a narrow economic moat.