5 Overvalued US Stocks

THE VALUE INVESTOR: The rout in commodity markets and ongoing challenges in the finances services sector mean some companies in these sectors are looking overvalued

Karen Kwok 26 February, 2016 | 3:48PM
Facebook Twitter LinkedIn

Problems in global commodity markets, ongoing challenges in the financial services industry and changing consumer habits can create problem for companies in these sectors. Morningstar analysts have tried to identify stocks that are trading at significantly more than their fair value and highlight issues investors need to be aware of.

Morningstar star rating can help investors determine whether a particular stock or company is overvalued. If a stock has a low star rating, that means Morningstar equity analysts think the shares are overvalued, and the share price could drop in the future.

The stock star rating is a forward-looking rating that takes into account both  quantitative and qualitative factors. There are currently 13 stocks in the US that Morningstar analysts rate one star, and we highlight five out of the list.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Banco Santander Mexico SA ADR5.73 USD0.70
Freeport-McMoRan Inc37.00 USD-4.76
Hormel Foods Corp42.26 USD0.17Rating
Jack Henry & Associates Inc164.70 USD-5.37Rating
Keurig Dr Pepper Inc34.20 USD-1.10Rating
Mettler-Toledo International Inc1,461.89 USD-0.59Rating
PepsiCo Inc160.61 USD-0.35Rating
Southern Copper Corp61.31 USD-4.77

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk