In a monthly screening of Europe-listed stocks, Morningstar uncovered newly undervalued names with 4- or 5-star ratings. 14 stocks upgraded to 4 stars and 3 joined the 5-star category. Notable 4-star stocks include TotalEnergies, Anheuser-Busch InBev, Ferrari, Givaudan, and Koninklijke Ahold Delhaize. The 5-star list features Cellnex Telecom, Edenred Group, and Sopra Steria Group.

The Morningstar Rating for Stocks assesses undervalued stocks based on current price, fair value estimate, and Uncertainty Rating. 4 or 5-star ratings indicate undervaluation, while 3 stars denote fair value, and 1 or 2 stars signal overvaluation. The Morningstar Europe Index suggests slight undervaluation in the European stock market, with 42% of stocks undervalued.

Notable 4-star stocks include TotalEnergies, Anheuser-Busch InBev, Ferrari, Givaudan, and Koninklijke Ahold Delhaize. TotalEnergies saw a rating increase due to a 2.79% drop in the past month. Anheuser-Busch InBev’s 2.44% climb led to a 4-star rating. Ferrari’s 18.98% loss caused a rating shift. Givaudan and Koninklijke Ahold Delhaize also experienced changes.

New 5-star stocks include Cellnex Telecom, Edenred Group, and Sopra Steria Group. Cellnex Telecom saw a loss of 4.27% but maintained a 5-star rating. Edenred Group shifted to 5 stars after a 1.92% loss. Sopra Steria Group’s 15.71% loss led to a 5-star rating. These stocks are trading at discounts to their fair value estimates with varying levels of uncertainty.

Read more at Morningstar: 14 Newly Undervalued Stocks this Month