Should You Buy 3-Star Stocks?

3-star stocks are not all equal, and avoiding them would rule out most of the FTSE's biggest names

James Gard 10 August, 2021 | 9:34AM
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At Morningstar.co.uk we often discuss which shares are overvalued and undervalued, but what about shares which are fairly valued? What does a 3-star rating mean for owners and potential owners of a stock, and does it mean you should buy, hold or sell?

With many global stock markets still highly valued after last year’s bounce, finding cheap stocks is getting harder. Currently Morningstar rates 1,724 stocks globally and the 3-star cohort is by far the most populus, with 728 of our rated stocks falling into this category. 

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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.

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About Author

James Gard  is content editor for Morningstar.co.uk