GSK stock trades 37% below our fair value estimate of $54 today.

We expect the litigation process to continue in 2023 and think the market is underestimating the firm’s growth potential. Conover thinks the market remains overly concerned about Zantac litigation. One of the largest pharmaceutical and vaccine companies, GSK’s innovative new product lineup and expansive list of patent-protected drugs earn a wide Morningstar Economic Moat Rating, says Morningstar director Damien Conover. The stock trades 39% below our fair value estimate of $90. The company has a history of buying brands with promising growth platforms and then expanding distribution while ruthlessly squeezing costs from the businesses, which contributes to its Morningstar Capital Allocation Rating of Exemplary. The brewer has a vast global scale and regional density. Morningstar director Philip Gorham calls the negative sentiment around the stock “temporary noise.” The brewer put up a solid performance in the first quarter, as price increases kept gross margins stable and on track to meet full-year forecasts. Anheuser-Busch InBevĪnheuser-Busch InBev stock returned to our list of the best stocks to buy last month, after negative publicity around the marketing of Bud Light in the U.S. Bancorp stock trades 42% below our fair value estimate of $53 today. Bancorp reported earnings, Compton noted that the bank’s deposit base and funding costs were tracking as we had expected. Bancorp is one of the most profitable regional banks we cover, says Morningstar strategist Eric Compton. But we think that the bank stock selloff went too far. Bancorp stock was pummeled as the regional banking crisis unfolded in March. The first bank on this month’s best stocks to buy now list, U.S. Morningstar Capital Allocation Rating: Exemplary.International Flavors & Fragrances stock trades 44% below our fair value estimate of $140. But we expect this wide-moat company to grow profits at a high-single-digit rate from 2024-26 and view the shares as materially undervalued, says Goldstein. The company has gotten off to a rough start in 2023 with weak near-term profits. The world’s largest specialty ingredients producer has struggled as cost inflation has weighed on profit growth, notes Morningstar strategist Seth Goldstein. International Flavors & Fragrances tops this month’s list of the best stocks to buy now. Morningstar Capital Allocation Rating: Standard.Here’s a little bit about why we like each of these companies at these prices, along with some key Morningstar metrics. The 10 most undervalued stocks from our Best Companies to Own list as of May 30, were: So, here we’re focusing on the 10 best companies with the most undervalued stock prices today. How much an investor pays to own a company-best or otherwise-is important, too. We believe the best companies have predictable cash flows and are run by management teams that have a history of making smart capital-allocation decisions.īut the best firms aren’t always the best stocks to buy now. The companies that make up this list-117 in total-have significant competitive advantages, and we think those advantages are stable or growing.

That’s where Morningstar’s Best Companies to Own list comes in. Investors have endured a lot of market uncertainty during the past year-and many market watchers expect volatility to persist for the foreseeable future.ĭuring uncertain times, investors may want to own companies that offer some sense of certainty in terms of cash flows and company fundamentals.

Best hotel stocks to buy now