Nine Stocks Fall to Overvalued Territory This Week
Every week, Morningstar identifies newly overvalued stocks in its US-listed coverage. For the week ending August 28th, nine companies saw their ratings drop to two stars, and two more fell to one star.
The five largest-cap stocks among those downgraded to two stars are Visa (V), Thermo Fisher Scientific (TMO), Gilead Sciences (GILD), Progressive Corporation (PGR), and VeriSign (VRSN).
Visa, for example, gained 2.85% over the past week but is now trading at a 16% premium to its fair value estimate of $330 per share.
The two companies downgraded to one star are Monster Beverage (MNST) and eBay (EBAY), with MNST trading at a 34% premium to its fair value estimate of $35 per share, and EBAY at a 58% premium to its fair value estimate of $67 per share.