From Morningstar: 2025-03-19 07:07:02

Morningstar has identified newly undervalued Europe-listed stocks, with 25 now rated 4 stars and 5 moving into 5-star territory. The 5 new 5-star stocks are Rheinmetall, Carnival, Melrose Industries, Puma, and ASOS. Among the 4-star stocks are Novo Nordisk, Ericsson, HSBC Holdings, BP, and Rolls-Royce Holdings.

The Morningstar Europe Index fell 0.25% in the past month, showing a 63% discount to fair value. Among 298 Europe-listed stocks, 42% are undervalued, 39% are fairly valued, and 18% are overvalued. 26 stocks are newly undervalued, while 13 are newly overvalued.

Rheinmetall, with a 5-star rating, saw a one-month return of 55.63% and is considered a large-growth company with a wide economic moat. Carnival, also 5-star, had a one-month return of -24.28% and is trading at a 45% discount to its fair value estimate. Melrose Industries, another 5-star stock, saw a one-month return of -18.29% and is a mid-growth company with a wide economic moat. Puma, a 5-star stock, had a one-month return of -18.51% and is a mid-value stock with no economic moat. ASOS, a 5-star stock, had a one-month return of -33.90% and is a small-value stock with no economic moat.

Novo Nordisk, a 4-star stock, had a one-month return of -6.37% and is a large-growth company with a wide economic moat. Ericsson, also 4-star, had a one-month return of -2.39% and is a large-value stock with no economic moat. HSBC Holdings, a 4-star stock, had a one-month return of 2.73% and is a large-value stock with no economic moat. BP, another 4-star stock, had a one-month return of -4.03% and is a large-value stock with no economic moat. Rolls-Royce Holdings, a 4-star stock, had a one-month return of 25.88% and is a large-growth company with a narrow economic moat.



Read more at Morningstar: 26 Newly Undervalued Stocks for the Month