The Morningstar Rating for stocks

The Morningstar Rating for stocks can help investors uncover stocks that are truly undervalued, cutting through the market noise.

Morningstar 7 March, 2016 | 6:00PM

 

 

The Morningstar Rating for stocks can help investors uncover stocks that are truly undervalued, cutting through the market noise.

The rating is determined by three factors: a stock's current price, Morningstar's estimate of the stock's fair value, and the uncertainty rating of the fair value. The bigger the discount, the higher the star rating. Four- and 5-star ratings mean the stock is undervalued, while a 3-star rating means it's fairly valued, and 1- and 2-star stocks are overvalued. When looking for investments, a 5-star stock is generally a better opportunity than a 1-star stock. 

Investors can use the Morningstar Rating for stocks to evaluate a stock's true value.

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Morningstar

Morningstar  Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 17 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets.