Stock purchasing: Fair or Undervalue

[stewardinlife]

Hello,

I just recently joined the forum, and just starting out with DGI, and I am planning to make purchases for stock through a broker. And I have a list, and want to choose few from them. I am probably going to be using an initial seed of 3K, and add 1K every month going forward.

My question is as I am learning that it is better to buy when the stock is "fair" or "undervalued" to get the most of it. Also, I understand a Morningstar rating of 3 or 4 stars is good. Am I understanding it right? Is there a place/tool where one can go to, to determine this criteria before purchasing?

Here is the list I have (I'll be using the initial money to collect few from these):

Johnson & Johnson (JNJ)
Wal-Mart (WMT)
Altria Group Inc (MO)
Aflac Incorporated (AFL)
ConocoPhillips (COP)
Chevron Corporation (CVX)
Procter & Gamble (PG),
Philip Morris International Inc. (PM)
Realty Income Corp. (O)
Kinder Morgan Inc. (KMI)
Royal Dutch Shell (RDS.B)
KO
PEP
XEL, D, WEC
RTN, CL, CLX
TROW
MSFT

Thank you for your feedback.

Paul