In September, Morningstar identified newly overvalued European stocks, with 6 receiving 2-star ratings and 1 dropping to 1-star. The top 5 overvalued stocks by market cap include Iberdrola, Danone, Argenx, Anglo American, and Imperial Brands. The Morningstar Europe Index fell by 0.49% last month, leaving the European stock market slightly undervalued based on Morningstar analysts’ coverage. Out of 303 European stocks, 44% are undervalued, 40% are fairly valued, and 17% are overvalued. 16 are newly undervalued, 6 are newly overvalued, and 1 stock changed from 2-star to 1-star. Each stock has a fair value estimate and an Uncertainty Rating, which determine its Morningstar Rating. Iberdrola dropped 3.99% in one month, Danone rose 3.08%, Argenx surged 13.87%, Anglo American jumped 18.99%, and Imperial Brands increased by 3.24%. Legrand, the new 1-star stock, gained 3.57%. These stocks have various performance metrics and Uncertainty Ratings based on Morningstar’s analysis.

Read more at Morningstar: 6 Newly Overvalued Stocks for the Month