28 Newly Overvalued Stocks this Week
Morgan Stanley and Palo Alto Networks are among the stocks now rated as expensive.
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Once a week, we screen the US-listed stocks under Morningstar’s coverage for newly overvalued names—those whose prices have just climbed into ranges warranting 1- or 2-star
The five new 2-star stocks with the largest market capitalization are:
The two new 1-star stocks, ordered by market capitalization, are:
The full list of new 2-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
The Latest Stock Valuation Changes
The Morningstar US Total Market Index rose 3.7% over the past week as of Aug. 7, leaving the overall US stock market moderately undervalued, hovering at a 5.0% discount to its fair value estimate on a market-cap-weighted basis.
Of the 879 US-listed stocks covered by Morningstar analysts:
- 34% are undervalued, 42% are fairly valued, and 23% are overvalued.
- 21 are newly undervalued.
- 28 are newly overvalued.
- Two moved from a 2-star rating to a 1-star rating.
- Five moved from a 1-star rating to a 2-star rating.
- None of the newly overvalued stocks jumped from a 3-star rating to a 1-star rating.
- 14 are no longer overvalued.
Metrics for This Week’s New 2-Star Stocks
Morgan Stanley MS
- Morningstar Rating: ★★
- Fair Value Estimate: $184.00
- Uncertainty Rating: High
Capital markets company Morgan Stanley gained 2.81% over the past week, shifting its Morningstar Rating to 2 stars from 3. Morgan Stanley has climbed 14.38% over the past three months and 56.96% over the past year. The stock is trading at an 18% premium to its fair value estimate of $184 per share, with an Uncertainty Rating of High. Morgan Stanley is a large-value company with a wide economic moat.
Palo Alto Networks PANW
- Morningstar Rating: ★★
- Fair Value Estimate: $285.00
- Uncertainty Rating: Very High
Software infrastructure firm Palo Alto Networks climbed 9.65% over the past week, bumping its Morningstar Rating to 2 stars from 3. The company’s stock is up 85.14% over the past three months and 116.45% over the past year. The stock’s price is 28% above its fair value estimate of $285 per share, with an Uncertainty Rating of Very High. The large-growth stock has a wide economic moat.
Amgen AMGN
- Morningstar Rating: ★★
- Fair Value Estimate: $342.00
- Uncertainty Rating: High
Following a 6.69% gain over the past week, drug manufacturer Amgen saw its Morningstar Rating move to 2 stars from 3. Amgen has gained 25.84% over the past three months and 48.68% over the past year. The large-value stock has a wide economic moat. Amgen is trading at a 20% premium to its fair value estimate of $342 per share, with an Uncertainty Rating of High.
Rio Tinto RIO
- Morningstar Rating: ★★
- Fair Value Estimate: $88.00
- Uncertainty Rating: Medium
Metals and mining firm Rio Tinto gained 4.39% over the past week, shifting its Morningstar Rating to 2 stars from 3. Rio Tinto has dropped 1.95% over the past three months and has climbed 75.18% over the past year. The stock is trading at a 15% premium to its fair value estimate of $88 per share, with an Uncertainty Rating of Medium. Rio Tinto is a large-value company with no economic moat.
Snowflake SNOW
- Morningstar Rating: ★★
- Fair Value Estimate: $255.00
- Uncertainty Rating: Very High
Following a 12.69% gain over the past week, software application firm Snowflake saw its Morningstar Rating move to 2 stars from 3. Snowflake has gained 114.99% over the past three months and 60.12% over the past year. The large-growth stock has no economic moat. Snowflake is trading at a 30% premium to its fair value estimate of $255 per share, with an Uncertainty Rating of Very High.
Metrics for This Week’s New 1-Star Stocks
Banco Santander SAN
- Morningstar Rating: ★
- Fair Value Estimate: $9.30
- Uncertainty Rating: High
Diversified bank Banco Santander climbed 4.26% over the past week, bumping its Morningstar Rating to 1 star from 2. The company’s stock is up 20.69% over the past three months and 66.08% over the past year. The stock’s price is 58% above its fair value estimate of $9.30 per share, with an Uncertainty Rating of High. The large-growth stock has a narrow economic moat.
Newmont NEM
- Morningstar Rating: ★
- Fair Value Estimate: $67.00
- Uncertainty Rating: High
Gold company Newmont gained 20.56% over the past week, shifting its Morningstar Rating to 1 star from 2. Newmont has dropped 0.21% over the past three months and has climbed 65.33% over the past year. The stock is trading at a 69% premium to its fair value estimate of $67 per share, with an Uncertainty Rating of High. Newmont is a large-value company with no economic moat.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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