8 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 July 17, eight stocks saw their ratings change to 4 stars, while five joined the 85 US-listed names in 5-star territory

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

• Taiwan Semiconductor Manufacturing TSM
• IBM IBM
• Marvell Technology MRVL
• Elevance Health ELV
• Synopsys SNPS

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 1.52% over the past week as of July 17, leaving the overall US stock market moderately undervalued, hovering at a 7.00% discount to its fair value estimate on a market-cap-weighted basis.

Of the 877 US-listed stocks covered by Morningstar analysts:

• 34% are undervalued, 42% are fairly valued, and 23% are overvalued.
• Eight are newly undervalued.
• 11 are newly overvalued.
• Five moved from a 4-star rating to a 5-star rating.
• Five 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.
• 12 are no longer undervalued.

Metrics for This Week’s New 4-Star Stocks

Taiwan Semiconductor Manufacturing TSM

• Morningstar Rating: ★★★★
• Fair Value Estimate: $534.00
• Uncertainty Rating: Medium

Semiconductor company TSMC lost 8.23% over the past week. TSMC has climbed 7.76% over the past three months and 63.94% over the past year. The stock’s fair value estimate rose to $534 per share from $428 during the week. It ended the week trading at a 25% discount to its new fair value estimate, with an Uncertainty Rating of Medium. TSMC is a large-growth company with a wide economic moat.

IBM IBM

• Morningstar Rating: ★★★★
• Fair Value Estimate: $260.00
• Uncertainty Rating: Medium

Information technology services company IBM dropped 26.04% over the past week, bumping its Morningstar Rating to 4 stars from 2. The company’s stock is down 15.48% over the past three months and 22.64% over the past year. The stock’s price is 18% below its fair value estimate of $260, with an Uncertainty Rating of Medium. The large-value stock has a narrow economic moat.

Marvell Technology MRVL

• Morningstar Rating: ★★★★
• Fair Value Estimate: $235.00
• Uncertainty Rating: High

Semiconductor company Marvell lost 19.99% over the past week, shifting its Morningstar Rating to 4 stars from 3. Marvell has climbed 35.10% over the past three months and 162.58% over the past year. The stock is trading at a 20% discount to its fair value estimate of $235 per share, with an Uncertainty Rating of High. Marvell is a large-growth company with a narrow economic moat.

Elevance Health ELV

• Morningstar Rating: ★★★★
• Fair Value Estimate: $474.00
• Uncertainty Rating: High

Healthcare plans company Elevance dropped 10.36% over the past week, bumping its Morningstar Rating to 4 stars from 3. The company’s stock is up 15.99% over the past three months and 25.98% over the past year. The stock’s price is 21% below its fair value estimate of $474 per share, with an Uncertainty Rating of High. The mid-value stock has a narrow economic moat.

Synopsys SNPS

• Morningstar Rating: ★★★★
• Fair Value Estimate: $520.00
• Uncertainty Rating: High

Following a 13.74% loss over the past week, software infrastructure firm Synopsys saw its Morningstar Rating move to 4 stars from 3. Synopsys has lost 14.53% over the past three months and 34.76% over the past year. The mid-growth stock has a wide economic moat. Synopsys is trading at a 26% discount to its fair value estimate of $520 per share, with an Uncertainty Rating of High.