Some European stocks are considered newly overvalued, but overall market is moderately undervalued
From Morningstar: 2025-06-19 06:33:00
The Europe-listed stocks under Morningstar’s coverage are screened each month for newly overvalued names. Stocks with a Morningstar Rating of 1 or 2 stars are considered overvalued. Four stocks saw their ratings change to 2 stars, one climbed into 1-star territory, while 13 are no longer overvalued. The overall European stock market is moderately undervalued, with 42% of 300 Europe-listed stocks undervalued, 40% fairly valued, and 18% overvalued.10 are newly undervalued, four are newly overvalued, and one moved from a 2-star rating to a 1-star rating. Iberdrola, Kongsberg Gruppen, Bouygues, and United Utilities Group are the new 2-star European stocks, while Lindt & Sprüngli is the new 1-star stock. Each stock has its own Morningstar Rating, One-Month Return, fair value estimate, and Uncertainty Rating. 1. The stock market experienced a surge today, with the S&P 500 reaching a record high and the Dow Jones Industrial Average climbing over 200 points. This positive momentum was driven by strong corporate earnings reports and optimism surrounding the US-China trade talks.
2. In other news, the unemployment rate dropped to a historic low of 3.5% in the latest government report. This marks the lowest level of unemployment in 50 years, with job gains recorded in healthcare, professional and business services, and transportation sectors.
3. A new study published in a leading medical journal revealed that a daily dose of aspirin may not be as effective in preventing heart attacks and strokes as previously believed. The study found that the risks of internal bleeding and other side effects may outweigh the benefits for certain individuals.
4. The US government announced plans to impose tariffs on $7.5 billion worth of EU goods in response to a long-standing dispute over aircraft subsidies. This move is expected to escalate trade tensions between the US and the EU, with retaliatory measures likely to follow from the European side.
Read more at Morningstar: 4 Newly Overvalued Stocks for the Month