Overvalued Stocks Alert – Week Ended June 6, 2025
Morningstar has flagged 13 U.S.-listed stocks as newly overvalued this past week. This means their current market prices are higher than what Morningstar analysts believe they’re truly worth (called the “fair value estimate”).
What does “overvalued” mean?
Investors might be paying too much for these stocks compared to their actual business fundamentals. It’s a sign to be cautious or review your exposure, especially if you already hold any of them.
Top 5 Large-Cap Stocks Now Rated 2-Stars (Overvalued)
(2-star means “overvalued but not extremely”)
Stock 1-Week Gain % Over Fair Value Fair Value Est. Notes
Eli Lilly (LLY) +4.37% +18% $650 Big pharma, still has strong growth
Linde (LIN) +1.42% +8% $437 Chemicals, low uncertainty
Arista (ANET) +12.25% +19% $82 Networking gear, wide moat
Amphenol (APH) +3.81% +17% $80 Electronics, wide moat
Cloudflare (NET) +8.31% +38% $130 Software, very high uncertainty
2 Stocks Now Rated 1-Star (Highly Overvalued)
(1-star means “very overvalued – proceed with extreme caution”)
Stock 1-Week Gain % Over Fair Value Fair Value Est. Notes
Freeport-McMoRan (FCX) +7.80% +60% $26 Copper producer, no moat
Box (BOX) -1.08% +56% $24 Cloud storage, no moat
Market Overview:
• The US stock market rose 1.64% last week.
• Morningstar says the overall market is now 6% overvalued.
• Out of 844 stocks:
• 38% are undervalued
• 41% are fairly valued
• 21% are overvalued
⚠️ Why It Matters:
These overvalued ratings suggest investors are being too optimistic about these companies’ prospects or growth. If you hold any of them, it might be a good time to:
• Review your portfolio
• Consider trimming your positions
• Wait for a price pullback before buying
Morningstar has flagged 13 U.S.-listed stocks as newly overvalued this past week. This means their current market prices are higher than what Morningstar analysts believe they’re truly worth (called the “fair value estimate”).
What does “overvalued” mean?
Investors might be paying too much for these stocks compared to their actual business fundamentals. It’s a sign to be cautious or review your exposure, especially if you already hold any of them.
Top 5 Large-Cap Stocks Now Rated 2-Stars (Overvalued)
(2-star means “overvalued but not extremely”)
Stock 1-Week Gain % Over Fair Value Fair Value Est. Notes
Eli Lilly (LLY) +4.37% +18% $650 Big pharma, still has strong growth
Linde (LIN) +1.42% +8% $437 Chemicals, low uncertainty
Arista (ANET) +12.25% +19% $82 Networking gear, wide moat
Amphenol (APH) +3.81% +17% $80 Electronics, wide moat
Cloudflare (NET) +8.31% +38% $130 Software, very high uncertainty
2 Stocks Now Rated 1-Star (Highly Overvalued)
(1-star means “very overvalued – proceed with extreme caution”)
Stock 1-Week Gain % Over Fair Value Fair Value Est. Notes
Freeport-McMoRan (FCX) +7.80% +60% $26 Copper producer, no moat
Box (BOX) -1.08% +56% $24 Cloud storage, no moat
Market Overview:
• The US stock market rose 1.64% last week.
• Morningstar says the overall market is now 6% overvalued.
• Out of 844 stocks:
• 38% are undervalued
• 41% are fairly valued
• 21% are overvalued
⚠️ Why It Matters:
These overvalued ratings suggest investors are being too optimistic about these companies’ prospects or growth. If you hold any of them, it might be a good time to:
• Review your portfolio
• Consider trimming your positions
• Wait for a price pullback before buying