Each month, we screen the Europe-listed stocks under Morningstar’s coverage for newly undervalued names.
Over the past month, 58 stocks saw their Morningstar Ratings change to 4 stars, while another 25 dropped into 5-star territory. Stocks rated 3 stars are fairly valued according to Morningstar analysts, while those rated 1 or 2 stars are considered overvalued.
The five new 4-star European stocks with the largest market capitalization are:
The five new 5-star European stocks with the largest market capitalization are:
The full lists of new 4- and 5-star stocks can be found at the bottom of this story. All returns in this article are reported in the stock’s base currency and all data is sourced from Morningstar Direct.
Newly Undervalued Stocks as of April 14
The Morningstar Europe Index fell 8.02% over the past month, leaving the overall European stock market significantly undervalued, hovering at an 11% discount to its fair value estimate on a cap-weighted basis.
Of the 296 Europe-listed stocks covered by Morningstar analysts:
- 64% are undervalued, 26% are fairly valued, and 11% are overvalued.
- 60 are newly undervalued.
- Four are newly overvalued.
- 23 moved from a 4-star rating to a 5-star rating.
- Two moved from a 5-star rating to a 4-star rating.
- Among the newly undervalued stocks, two jumped from a 3-star rating to a 5-star rating.
- One is no longer undervalued.
Morningstar analysts assign every stock under their coverage a fair value estimate, which is an intrinsic measure of the stock’s worth, and an Uncertainty Rating, which captures the range of potential outcomes for that estimate. A higher Uncertainty Rating equates to a larger range of prices considered fairly valued.
These two metrics and the stock’s current price, are used to determine its Morningstar Rating.
Distribution of Star Ratings for Europe-Listed Stocks
Source: Morningstar Direct. Data as of April 14, 2025.
Metrics for this Month’s New 4-Star Stocks
SAP SAP
- Morningstar Rating: ★★★★
- One-Month Return: -5.69%
Software application firm SAP has dropped 7.52% over the past three months and climbed 35.42% over the past year. The stock is trading at a 14% discount to its fair value estimate of EUR 265, with an Uncertainty Rating of Medium. SAP is a large-growth company with a wide economic moat.
LVMH Moet Hennessy Louis Vuitton MC
- Morningstar Rating: ★★★★
- One-Month Return: -12.39%
Luxury goods firm LVMH Moet Hennessy Louis Vuitton has lost 18.57% over the past three months and 30.88% over the past year. The large-growth stock has a wide economic moat. LVMH Moet Hennessy Louis Vuitton is trading at an 18% discount to its fair value estimate of EUR 650, with an Uncertainty Rating of Medium.
AstraZeneca AZN
- Morningstar Rating: ★★★★
- One-Month Return: -13.96%
Drug manufacturer AstraZeneca has dropped 1.51% over the past three months and 4.79% over the past year. The stock is trading at a 17% discount to its fair value estimate of GBX 12,400, with an Uncertainty Rating of Medium. AstraZeneca is a large-growth company with a wide economic moat.
Shell SHEL
- Morningstar Rating: ★★★★
- One-Month Return: -10.59%
Oil and gas firm Shell has lost 10.99% over the past three months and 16.58% over the past year. The large-value stock has no economic moat. Shell is trading at a 19% discount to its fair value estimate of GBX 2,900, with an Uncertainty Rating of High.
Siemens SIE
- Morningstar Rating: ★★★★
- One-Month Return: -19.87%
Specialty industrial machinery firm Siemens has dropped 2.05% over the past three months and climbed 10.04% over the past year. The fair value estimate for Siemens rose to EUR 212 from EUR 198 during the month. It ended the month trading at a 12% discount to its new fair value estimate, with an Uncertainty Rating of Medium. Siemens is a large-core company with a wide economic moat.
Metrics for this Month’s New 5-Star Stocks
Diageo DGE
- Morningstar Rating: ★★★★★
- One-Month Return: 2.11%
Alcoholic beverages company Diageo is down 8.42% over the past three months and 21.67% over the past year. The stock’s price is 19% below its fair value estimate of GBX 2,590, with an Uncertainty Rating of Low. The large-value stock has a wide economic moat.
BMW Group BMW
- Morningstar Rating: ★★★★★
- One-Month Return: -16.37%
Auto manufacturer BMW Group has dropped 9.63% over the past three months and 33.40% over the past year. The stock is trading at a 41% discount to its fair value estimate of EUR 117, with an Uncertainty Rating of High. BMW Group is a large-value company with no economic moat.
BASF BAS
- Morningstar Rating: ★★★★★
- One-Month Return: -20.09%
Chemical company BASF is down 1.16% over the past three months and 13.00% over the past year. The stock’s price is 30% below its fair value estimate of EUR 60, with an Uncertainty Rating of Medium. The large-value stock has a narrow economic moat.
Glencore GLEN
- Morningstar Rating: ★★★★★
- One-Month Return: -18.92%
Metals and mining firm Glencore has dropped 29.26% over the past three months and 45.18% over the past year. The fair value estimate for Glencore was cut to GBX 460 from GBX 490 during the month. It ended the month trading at a 43% discount to its new fair value estimate, with an Uncertainty Rating of High. Glencore is a large-value company with no economic moat.
Infineon Technologies IFX
- Morningstar Rating: ★★★★★
- One-Month Return: -23.42%
Semiconductor company Infineon Technologies has lost 18.17% over the past three months and 16.21% over the past year. The large-core stock has a narrow economic moat. Infineon Technologies is trading at a 38% discount to its fair value estimate of EUR 43, with an Uncertainty Rating of High.
This article was generated with the help of automation and reviewed by Morningstar editors. Learn more about Morningstar’s use of automation.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar's editorial policies.
