Are These 9 Stocks with Fair-Value Hikes Worth Buying?
These stocks all experienced significant fair-value increases in June--and one enjoyed a moat boost, too.
We raised the fair value estimates on nine stocks by more than 10% in June. However, a fair-value boost isn't a buy signal. A stock is only a "buy" from our perspective if it's trading well below our fair value estimate, after being adjusted for uncertainty. (For more about how we determine our fair value estimates, watch here.) In fact, none of the stocks upgraded last month are trading in buying range today.
So why bother flagging these changes? We think that stocks that have seen significant fair value increases are worth investigating further. After all, some bit of good news or positive insight--a meaningful change in revenue expectations, improving margins, or other new information--triggered the change. And sometimes, the change indicates that a company's prospects are brighter than we'd previously thought.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.