Morningstar has identified 17 Europe-listed stocks as newly overvalued, with ratings of 1 or 2 stars. Novartis, Siemens, Airbus Group, Allianz, and UBS Group are the five new 2-star stocks with the largest market capitalization. On the other hand, Hermès International, UCB, Commerzbank, Anglo American, and Saab are the new 1-star stocks with the largest market capitalization.

The Morningstar Europe Index rose by 5.68% over the past month, leaving the European stock market slightly overvalued, around 4% above its fair value estimate on a market cap-weighted basis. Among the 313 Europe-listed stocks covered by Morningstar analysts, 35% are undervalued, 42% are fairly valued, and 23% are overvalued. Two stocks are newly undervalued, while 18 are newly overvalued. Six stocks moved from a 2-star rating to a 1-star rating, with no stocks moving in the opposite direction. One stock jumped from a 3-star rating to a 1-star rating, and three stocks are no longer considered overvalued.

Novartis, Siemens, Airbus Group, Allianz, and UBS Group are the new 2-star stocks with detailed metrics. Novartis saw a 7.72% increase in the past month, with a stock price 18% above its fair value estimate of CHF 96. Siemens gained 10.42%, trading at a 16% premium to its fair value estimate of EUR 225. Airbus Group climbed 13.49%, with a stock price 17% above its fair value estimate of EUR 189. Allianz lost 0.16% and is trading at a 5% premium to its fair value estimate of EUR 361. UBS Group saw a 10.54% gain, trading at a 22% premium to its fair value estimate of CHF 31.

Hermès International, UCB, Commerzbank, Anglo American, and Saab are the new 1-star stocks with detailed metrics. Hermès gained 4.87% but is trading at a 42% premium to its fair value estimate of EUR 1,580. UCB saw an 8.03% increase and is trading at a 41% premium to its fair value estimate of EUR 180. Commerzbank gained 3.86% but is trading at a 58% premium to its fair value estimate of EUR 22.70. Anglo American climbed 14.31% and is trading at a 56% premium to its fair value estimate of £20.60. Saab rose by 38.68% and is trading at a 44% premium to its fair value estimate of SEK 490.

Read more at Morningstar: 18 Newly Overvalued Stocks this Month