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Stock Analyst Update

Four Stocks with High-Return Potential

Why the market's got it wrong on these 5-star names.

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Following is a roundup of stocks that recently jumped to 5 stars. By way of background, we award a stock 5 stars when it trades at a suitably large discount--i.e., a margin of safety--to our fair value estimate. Thus, when a stock hits 5-star territory, we consider it an especially compelling value.

Forest Laboratories
Moat: Narrow  |  Risk: Average  |  Price/Fair Value Ratio*: 0.76  |  Three-Year Expected Annual Return*: 20.9%

Jeffrey Ptak has a position in the following securities mentioned above: AXP, MSFT. Find out about Morningstar’s editorial policies.