22 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 June 26, 22 stocks saw their ratings change to 4 stars, while nine joined the 93 US-listed names in 5-star territory.

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

• Oracle ORCL
• Palantir PLTR
• Shell SHEL
• Blackstone BX
• Automatic Data Processing ADP

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 fell 1.76% over the past week as of June 26, leaving the overall US stock market significantly undervalued, hovering at an 11.00% discount to its fair value estimate on a market cap-weighted basis.

Of the 874 US-listed stocks covered by Morningstar analysts:

• 39% are undervalued, 37% are fairly valued, and 23% are overvalued.
• 22 are newly undervalued.
• 21 are newly overvalued.
• Nine moved from a 4-star rating to a 5-star rating.
• One 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.
• 26 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Oracle

• Morningstar Rating: ★★★★
• Fair Value Estimate: $207.00
• Uncertainty Rating: Very High

Software infrastructure firm Oracle lost 19.40% over the past week, shifting its Morningstar Rating to 4 stars from 3. Oracle has climbed 4.38% over the past three months and has dropped 29.51% over the past year. The stock is trading at a 28% discount to its fair value estimate of $207 per share, with an Uncertainty Rating of Very High. Oracle is a large-core company with a narrow economic moat.

Palantir

• Morningstar Rating: ★★★★
• Fair Value Estimate: $153.00
• Uncertainty Rating: Very High

Following a 12.10% loss over the past week, software infrastructure firm Palantir saw its Morningstar Rating move to 4 stars from 3. Palantir has lost 23.47% over the past three months and 21.71% over the past year. The large-growth stock has a narrow economic moat. Palantir is trading at a 26% discount to its fair value estimate of $153 per share, with an Uncertainty Rating of Very High.

Shell

• Morningstar Rating: ★★★★
• Fair Value Estimate: $95.00
• Uncertainty Rating: High

Oil and gas firm Shell dropped 2.89% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 16.20% over the past three months and is up 11.94% over the past year. The stock’s price is 19% below its fair value estimate of $95 per share, with an Uncertainty Rating of High. The large-value stock has no economic moat.

Blackstone

• Morningstar Rating: ★★★★
• Fair Value Estimate: $140.00
• Uncertainty Rating: High

Following a 6.78% loss over the past week, asset management firm Blackstone saw its Morningstar Rating move to 4 stars from 3. Blackstone has gained 6.26% over the past three months and has lost 19.30% over the past year. The large-value stock has a wide economic moat. Blackstone is trading at an 18% discount to its fair value estimate of $140 per share, with an Uncertainty Rating of High.

Automatic Data Processing

• Morningstar Rating: ★★★★
• Fair Value Estimate: $249.00
• Uncertainty Rating: Medium

Software application firm ADP gained 2.35% over the past week, shifting its Morningstar Rating to 4 stars from 3. ADP has climbed 10.13% over the past three months and has dropped 24.18% over the past year. The stock is trading at a 10% discount to its fair value estimate of $249 per share, with an Uncertainty Rating of Medium. ADP is a mid-core company with a narrow economic moat.