6 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

. For the week ended Feb. 20, six stocks saw their ratings change to 4 stars, while none joined the 65 US-listed names in 5-star territory

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

• Apollo Global Management APO
• Ford Motor F
• Expedia Group EXPE
• Okta OKTA
• Light & Wonder LNWO

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 rose 1.07% over the past week as of Feb. 20.

Of the 828 US-listed stocks covered by Morningstar analysts:

• 34% are undervalued, 40% are fairly valued, and 26% are overvalued.
• Six are newly undervalued.
• 10 are newly overvalued.
• Zero 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.
• Eight are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Apollo Global Management

• Morningstar Rating: ★★★★
• Fair Value Estimate: $150.00
• Uncertainty Rating: High

Following a 3.87% loss over the past week, asset management firm Apollo Global saw its Morningstar Rating move to 4 stars from 3. Apollo Global has lost 5.15% over the past three months and 22.44% over the past year. The mid-core stock has a narrow economic moat. Apollo Global is trading at a 20% discount to its fair value estimate of $150 per share, with an Uncertainty Rating of High.

Ford Motor

• Morningstar Rating: ★★★★
• Fair Value Estimate: $18.00
• Uncertainty Rating: High

Auto manufacturer Ford lost 0.78% over the past week. Ford has climbed 14.09% over the past three months and 56.75% over the past year. The stock’s fair value estimate rose to $18 per share from $16 during the week. It ended the week trading at a 22% discount to its new fair value estimate, with an Uncertainty Rating of High. Ford is a mid-value company with no economic moat.

Expedia Group

• Morningstar Rating: ★★★★
• Fair Value Estimate: $245.00
• Uncertainty Rating: High

Travel services company Expedia dropped 4.32% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is down 13.33% over the past three months and is flat over the past year. The stock’s price is 17% below its fair value estimate of $245 per share, with an Uncertainty Rating of High. The mid-core stock has a narrow economic moat.

Okta

• Morningstar Rating: ★★★★
• Fair Value Estimate: $100.00
• Uncertainty Rating: Very High

Following a 14.86% loss over the past week, software infrastructure firm Okta saw its Morningstar Rating move to 4 stars from 3. Okta has lost 5.15% over the past three months and 21.96% over the past year. The mid-core stock has no economic moat. Okta is trading at a 26% discount to its fair value estimate of $100 per share, with an Uncertainty Rating of Very High.

Light & Wonder

• Morningstar Rating: ★★★★
• Fair Value Estimate: $118.00
• Uncertainty Rating: High

Gambling company Light & Wonder lost 2.88% over the past week, shifting its Morningstar Rating to 4 stars from 3. Light & Wonder has climbed 7.03% over the past three months and has dropped 9.29% over the past year. The stock is trading at a 19% discount to its fair value estimate of $118 per share, with an Uncertainty Rating of High. Light & Wonder has no economic moat.