What is the highest star rating a stock can receive?

The highest star rating a stock can receive is a five, explains Morningstar. The Morningstar Rating for stocks varies from one to five stars, depending on how risky a stock is. Five-star ratings can also be broken into high-risk and low-risk 5-star stocks.

A high-risk 5-star stock is expected to offer better returns on investments and costs of equity than a low-risk 5-star stock can, according to Morningstar. The Morningstar company also states that 3-star stocks are those that offer a fair return and are generally not as risky as 5-star stocks. Morningstar Analyst reports include expert opinions on more than 3,900 stocks and funds, states Morningstar.