Each month we screen European listed stocks under coverage of the newly undervalued name Morning Star.
Over the past month, 58 shares have changed their Morningstar rating to four stars, with another 25 falling into five star territory. Stocks rated as 3 stars are highly rated according to Morningstar analysts, but those rated as one or two stars are considered overrated.
Here are five new four-star European stocks with the largest market capitalization:
Sap SapLVMH must play Hennessy Lewis Vuitton MCAstraZeneca AZNshell shellSiemens she
Here are five new five-star European stocks with the largest market capitalization:
The complete list of new 4 and 5 star stocks is at the bottom of this story. All returns in this article are reported in the base currency of the stock, and all data is sourced from MorningStar Direct.
As of April 14th, newly undervalued stocks
The Morningstar Europe Index has dropped by 8.02% over the past month, causing the entire European stock market to be significantly undervalued, hovering at an 11% discount on fair value estimates on a CAP-weighted basis.
Of the 296 European list stocks covered by Morningstar analysts:
64% are underestimated, 26% are significantly overestimated, and 11% are overestimated. 60 is newly underrated.
Morningstar Analyst allocates all shares under coverage Estimating fair valuethis is an essential measure of the value of inventory, Uncertainty assessmentCaptures the range of potential results for that estimate. A higher uncertainty rating corresponds to a wider range of prices that are considered to be highly valued.
These two metrics and the current price of stock are used to determine the Morning Star rating.
Distribution of star ratings for stocks registered in Europe
Source: Morningstar Direct. Data as of April 14, 2025.
New 4-star stock metrics of the month
Sap Sap
Morningstar Rating: ★★★1 Month Return: -5.69%
Software application company SAP has declined 7.52% over the past three months and rose 35.42% over the past year. The shares are traded at a fair value estimate of 265 euros and a 14% discount, with a media uncertainty rating. SAP is a major growth company with a wide range of economic moats.
LVMH must play Hennessy Lewis Vuitton MC
Morningstar Rating: ★★★1 Month Return: -12.39%
Luxury company LVMH Moet Hennessy Louis Vuitton has lost 18.57% in the past three months and 30.88% in the past year. Large growth stocks have a wide range of economic moats. LVMH Moet Hennessy Louis Vuitton trades at a fair value estimate of 650 euros and a 18% discount, with a media uncertainty characterization.
AstraZeneca AZN
Morningstar Rating: ★★★1 Month Return: -13.96%
Pharmaceutical manufacturer Astrazeneca has declined by 1.51% over the past three months and 4.79% over the past year. The stock is trading at an estimated fair value of GBX 12,400 and a 17% discount, with a media uncertainty rating. Astrazeneca is a huge growth company with a wide economic moat.
shell shell
Morningstar Rating: ★★★1 Month Return: -10.59%
Oil and gas company Shell has lost 10.99% over the past three months and 16.58% over the past year. Large-value inventory does not have economical moats. Shell trades at a 19% discount on its fair value estimate of GBX 2,900, giving it a high rating of uncertainty.
Siemens she
Morningstar Rating: ★★★1 Month Return: -19.87%
Specialized industrial machinery company Siemens has declined 2.05% over the past three months and rose 10.04% over the past year. Siemens’ fair value estimate rose to 212 euros from 198 euros that month. Monthly transactions ended with a 12% discount on new fair value estimates in medium uncertainty valuations. Siemens is a large company with a wide range of business moats.
New 5-star stock metrics of the month
Diageo dge
Morningstar Rating: ★★★★1 Month Return: 2.11%
Alcoholic beverage company Diageo has declined 8.42% over the past three months and 21.67% over the past year. The stock’s price is 19% below the fair value estimate of GBX 2,590, with a low uncertainty rating. A large value inventory has a wide range of economic moats.
BMW Group BMW
Morningstar Rating: ★★★★1 Month Return: -16.37%
Automaker BMW Group has declined by 9.63% in the past three months and 33.40% in the past year. The shares are trading at a fair value estimate of 117 euros and a 41% discount, giving them a high rating of uncertainty. BMW Group is a large business with no economical moats.
BASF BAS
Morningstar Rating: ★★★★1 Month Return: -20.09%
Chemical Company BASF has declined 1.16% over the past three months and 13.00% over the past year. The price of the stock is 30% below the estimated fair value of 60 euros, with a valuation of uncertainty in the medium. A large value inventory has a narrow economic moat.
Glencore Glen
Morningstar Rating: ★★★★1 Month Return: -18.92%
Metals and mining company Glencore has declined 29.26% over the past three months and 45.18% over the past year. Glencore’s fair value estimate was reduced from GBX 490 to GBX 460 during the month. Monthly transactions ended with a new fair value estimate and a 43% discount, with a high uncertainty rating. Glencore is a large company with no economical moats.
Infineon Technologies IFX
Morningstar Rating: ★★★★1 Month Return: -23.42%
Semiconductor company Infineon Technologies has lost 18.17% in the past three months and 16.21% in the past year. The large core stock has a small economic moat. Infineon Technologies is trading at a fair value estimate of 43 euros and a 38% discount, giving it a high rating of uncertainty.
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