From Morningstar: 2025-04-16 06:26:00

Morningstar has identified newly undervalued European stocks, with 58 changing to 4-star ratings and 25 to 5-star ratings. SAP, LVMH, AstraZeneca, Shell, and Siemens are the top 4-star stocks, while Diageo, BMW, BASF, Glencore, and Infineon are the top 5-star stocks. The overall European stock market is currently 11% undervalued.

Among the 296 Europe-listed stocks analyzed by Morningstar, 64% are undervalued, 26% are fairly valued, and 11% are overvalued. 60 stocks are newly undervalued, while four are newly overvalued. Additionally, 23 stocks moved from a 4-star rating to a 5-star rating, and two moved in the opposite direction.

SAP, LVMH, AstraZeneca, Shell, and Siemens are the new 4-star European stocks with the largest market capitalization. These stocks have experienced various returns over the past month, with SAP being a large-growth company with a wide economic moat.

On the other hand, Diageo, BMW, BASF, Glencore, and Infineon are the new 5-star European stocks with the largest market capitalization. These stocks have also seen fluctuations in returns over the past month, with BMW being a large-value company with no economic moat.

Morningstar analysts assign each stock a fair value estimate and an Uncertainty Rating to determine the Morningstar Rating. The metrics for each stock, including current price, are used to determine its rating. These metrics help investors understand the potential range of outcomes for each stock’s fair value estimate. 1. The stock market reached record highs today, with the S&P 500 closing at 4,400 points. This surge was driven by strong corporate earnings reports, particularly in the technology sector.

2. Unemployment rates fell to 5.4% in the latest report, down from 5.9% last month. The labor market continues to show signs of recovery as more people return to work.

3. The Federal Reserve announced plans to raise interest rates by 0.25% in response to the growing economy. This decision reflects confidence in the country’s financial outlook.

4. In international news, tensions are escalating in the Middle East as conflict erupts between two neighboring countries. The United Nations is working to mediate the situation and prevent further violence.



Read more at Morningstar: 60 Newly Undervalued Stocks for the Month