40 New 4-Star Stocks This Week
Tesla and AMD are among the stocks that fell into undervalued territory.
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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 Nov. 6, 40 stocks saw their ratings change to 4 stars, while four joined the 56 US-listed names in 5-star territory.
The five new 4-star stocks with the largest market capitalization are:
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 fell 2.6% over the past week as of Nov. 6, leaving the overall US stock market significantly undervalued, hovering at a 12.0% discount to its fair value estimate on a market cap-weighted basis.
Of the 877 US-listed stocks covered by Morningstar analysts:
- 40% are undervalued, 41% are fairly valued, and 18% are overvalued.
- 41 are newly undervalued.
- 30 are newly overvalued.
- Three moved from a 4-star rating to a 5-star rating.
- 18 moved from a 5-star rating to a 4-star rating.
- One newly undervalued stock jumped from a 3-star rating to a 5-star rating.
- 54 are no longer undervalued.
Metrics for This Week’s New 4-Star Stocks
Tesla TSLA
- Morningstar Rating: ★★★★
- Fair Value: $475.00
- Uncertainty Rating: Very High
Following a 10.4% loss over the past week, auto manufacturer Tesla saw its Morningstar Rating move to 4 stars from 3. Tesla has gained 12.11% over the past three months and has lost 19.67% over the past year. The large-growth stock has a narrow economic moat. Tesla is trading at a 25% discount to its fair value estimate of $475 per share, with an Uncertainty Rating of Very High.
Advanced Micro Devices AMD
- Morningstar Rating: ★★★★
- Fair Value: $570.00
- Uncertainty Rating: Very High
Semiconductor company AMD dropped 11.05% over the past week. The company’s stock is down 8.22% over the past three months and is up 88.91% over the past year. The stock’s fair value estimate rose to $570 from $530 during the week. It ended the week trading at a 21% discount to its new fair value estimate, with an Uncertainty Rating of Very High. The large-growth stock has a narrow economic moat.
SK Hynix SKHY
- Morningstar Rating: ★★★★
- Fair Value: $164.00
- Uncertainty Rating: Very High
Semiconductor company SK Hynix lost 14.66% over the past week, shifting its Morningstar Rating to 4 stars from 3. SK Hynix has dropped 11.27% over the past three months. The stock is trading at a 22% discount to its fair value estimate of $164 per share, with an Uncertainty Rating of Very High. SK Hynix is a large-core company with no economic moat.
Cisco CSCO
- Morningstar Rating: ★★★★
- Fair Value: $115.00
- Uncertainty Rating: High
Following a 10.20% loss over the past week, communications equipment firm Cisco saw its Morningstar Rating move to 4 stars from 3. Cisco has lost 22.07% over the past three months and has gained 34.52% over the past year. The large-value stock has a wide economic moat. Cisco is trading at an 18% discount to its fair value estimate of $115 per share, with an Uncertainty Rating of High.
Intel INTC
- Morningstar Rating: ★★★★
- Fair Value: $85.00
- Uncertainty Rating: Very High
Semiconductor company Intel lost 14.42% over the past week, shifting its Morningstar Rating to 4 stars from 3. Intel has dropped 43.61% over the past three months and has climbed 51.13% over the past year. The stock is trading at a 34% discount to its fair value estimate of $85 per share, with an Uncertainty Rating of Very High. Intel is a large-growth 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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