Are these 9 stocks with fair value hikes worth buying?

These stocks all experienced significant fair-value increases in June--and one enjoyed a moat boost, too

Susan Dziubinski 22 July, 2019 | 1:45AM

Rocket through sky

We raised the fair value estimates on nine stocks by more than 10% in June. However, a fair-value boost isn't a buy signal. A stock is only a "buy" from our perspective if it's trading well below our fair value estimate, after being adjusted for uncertainty. In fact, none of the stocks upgraded last month are trading in buying range today.

So why bother flagging these changes? We think that stocks that have seen significant fair value increases are worth investigating further. After all, some bit of good news or positive insight--a meaningful change in revenue expectations, improving margins, or other new information--triggered the change. And sometimes, the change indicates that a company's prospects are brighter than we'd previously thought.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Merck & Co Inc82.93 USD-0.26
PG&E Corp10.00 USD2.15
Twilio Inc A245.02 USD2.78

About Author

Susan Dziubinski

Susan Dziubinski  Susan Dziubinski is director of content for Morningstar.com.

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