From Morningstar: 2025-05-14 07:03:00

Morningstar has identified newly undervalued European stocks for May, with one stock moving to a 4-star rating and another to 5-star territory. The Europe Index rose by 12.82% over the past month, with 45% of stocks undervalued, 35% fairly valued, and 21% overvalued.

Leonardo (LDO) emerged as the new 4-star European stock, with a one-month return of 6.53%. Coloplast (COLO B) is the new 5-star stock, with a one-month return of -7.50%. Leonardo is up 51.59% over three months, while Coloplast is down 18.96%. Both have high Morningstar Ratings and economic moats.

Morningstar analysts assign fair value estimates and Uncertainty Ratings to stocks. The metrics help determine the Morningstar Rating, with a higher Uncertainty Rating indicating a wider range of fair values. Leonardo and Coloplast are trading at discounts to their fair value estimates, with strong performances over the past year.

The Europe-listed stocks covered by Morningstar show a distribution of star ratings, with a mix of undervalued, fairly valued, and overvalued stocks. The market as a whole is slightly undervalued, with some stocks moving between 4-star and 5-star ratings. Morningstar’s analysis provides investors with valuable insights into European stock performance.



Read more at Morningstar: 1 Newly Undervalued Stock for the Month