Market Shake-Up: 7 Stocks Earn Coveted 5-Star Rating as Salesforce & S&P Turn Deeply UndervaluedFresh valuation updates from Morningstar show a major shift in opportunity across US equities, with seven stocks newly upgraded to 5-star status — signaling significant undervaluation.
Among the biggest names making the list?
Salesforce
S&P Global
Here’s a detailed breakdown of what’s happening
Market Context: Why Ratings Are Changing
• The Morningstar US Market Index fell 1.29% for the week ended Feb. 13.
• The broader US market is now trading at an 8% discount to fair value.
• Of 828 US-listed stocks under coverage:
• 35% are undervalued
• 39% are fairly valued
• 26% are overvalued
• 7 stocks moved from
to (5-star territory).A 5-star rating indicates a stock is trading at a material discount to its intrinsic value, based on price, fair value estimate, and uncertainty.
The Largest New 5-Star Stocks
Here are the five highest market-cap names newly rated 5 stars:
• Salesforce (CRM)
• S&P Global (SPGI)
• IQVIA (IQV)
• Dassault Systemes (DASTY)
• Molina Healthcare (MOH)
Let’s break them down individually.
Salesforce (CRM)•
Morningstar Rating: 5 Stars• Fair Value Estimate: $325
• Trading at: 42% discount
•
Uncertainty: High• Economic Moat: Wide
Salesforce has fallen:
• 21% in the past 3 months
• 42% in the past year
The sharp sell-off pushed the stock into deep undervaluation territory, creating a significant gap between price and intrinsic value.
S&P Global (SPGI)•
Morningstar Rating: 5 Stars• Fair Value Estimate: $570
• Trading at: 28% discount
•
Uncertainty: Low• Economic Moat: Wide
The financial data giant:
• Dropped 6.77% this week
• Down nearly 24% over the past year
With low uncertainty and a wide moat, analysts see this pullback as compelling.
IQVIA (IQV)•
Morningstar Rating: 5 Stars• Fair Value Estimate: $268
• Trading at: 38% discount
•
Uncertainty: Medium• Economic Moat: Narrow
The healthcare analytics firm:
• Fell nearly 11% last week
• Down 25% in 3 months
Recent weakness pushed it firmly into undervalued territory.
️
Dassault Systemes (DASTY)•
Morningstar Rating: 5 Stars• New Fair Value Estimate: $31.70 (cut from $37.70)
• Trading at: 34% discount
•
Uncertainty: Medium• Economic Moat: Wide
Shares plunged:
• 20% last week
• Nearly 50% over the past year
Despite a fair value revision lower, the market selloff appears overdone relative to intrinsic value.
Molina Healthcare (MOH)•
Morningstar Rating: 5 Stars• Fair Value Estimate: $262
• Trading at: 48% discount
•
Uncertainty: Very High• Economic Moat: Narrow
The healthcare plans provider:
• Down nearly 50% over the past year
• Slight rebound last week (+2.76%)
This is the deepest discount among the group — but it carries the highest uncertainty.
What a 5-Star Rating Means
Morningstar’s rating is based on:
Current stock price Fair value estimate (intrinsic worth) Uncertainty rating•
= Significantly undervalued•
= Fairly valued•
= OvervaluedNo stock jumped directly from 3 stars to 5 stars this week — these upgrades reflect gradual price declines into attractive zones.
Key Takeaways for Investors
• Market weakness is creating selective opportunities.
• Several wide-moat companies now trade at 30–40% discounts.
• Tech and data firms are dominating the undervalued list.
• Risk levels vary significantly — from low (S&P Global) to very high (Molina).
This week’s upgrades suggest that while the broader market is only moderately undervalued, pockets of deep value are emerging.