Four 4 Star Rated Stocks

Stocks with a 4 star Morningstar rating are trading below their estimated fair value. We look at some of options for investors

Holly Black 7 January, 2020 | 11:09AM

Four stars

Investors looking for inspiration for stocks to back in 2020 could take note of the Morningstar rating for stocks. The scale from one to five indicates how far above or below a share is trading from its so-called Fair Value Estimate - what Morningstar analysts believe it is worth.

Just two UK-listed stocks currently hold a five-star rating (tobacco giants Imperial Brands and British American Tobacco), which indicates the best opportunity for returns based on the share's price compared to its fair value, along with a number of other factors such as whether it has an Economic Moat (barriers to entry from competition) and its Uncertainty Rating. 

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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.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BP PLC307.55 GBX-1.82
Carnival PLC1,002.00 GBX-2.29
Pearson PLC574.00 GBX-0.17
Sainsbury (J) PLC197.25 GBX-1.57

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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