The US market looks expensive, so investors may be wondering which stocks to buy now against this backdrop.
Regardless of where the markets are headed, investors may want to own companies that offer some sense of certainty in terms of cash flows and company fundamentals. That’s where Morningstar’s Best Companies to Own list comes in. The companies that make up this list have significant competitive advantages. 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.
But the best companies aren’t always the best stocks to buy now. How much an investor pays to own a company—best or otherwise—is important, too. So, here we’re focusing on the 10 best companies to invest in with the most undervalued stock prices today.
10 Best Stocks to Buy Now—June 2025
The 10 most undervalued stocks from our Best Companies to Own list as of May 29, 2025, were:
- Nike NKE
- Pfizer PFE
- Campbell CPB
- Yum China Holdings YUMC
- Thermo Fisher Scientific TMO
- Brown-Forman BF.B
- Constellation Brands STZ
- West Pharmaceutical Services WST
- Coloplast CLPBY
- GSK GSK
Here’s a little bit about why we like each of these companies at these prices, along with some key Morningstar metrics. All data is as of market close on May 29.
Nike
- Price/Fair Value: 0.55
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Exemplary
- Industry: Footwear and Accessories
Nike is the most undervalued stock on our list of best companies to buy this month, trading 45% below our fair value estimate of $112 per share. The largest athletic footwear brand in all major categories and all major markets, Nike dominates categories like running and basketball with popular shoe styles. We view Nike as the leader of the athletic apparel market and believe it will overcome current challenges, such as uneven demand for sportswear in key markets and high tariff exposure, argues Morningstar senior analyst David Swartz. Nike has a renewed focus on its key partners, its products, and its connections to international athletics under new CEO Elliott Hill. Hill is investing in new marketing and products while rebuilding Nike’s relationships with retailers and the global sports community.
Pfizer
- Price/Fair Value: 0.56
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Standard
- Industry: Drug Manufacturers—General
A household name among drug manufacturers, Pfizer stock is currently trading at a 44% discount to its fair value estimate of $42 per share. The company’s large size gives it significant competitive advantages in developing new drugs, and its diverse portfolio of drugs helps insulate the company from any one particular patent loss, says Morningstar director Karen Andersen. After many years of struggling to bring out important new drugs, Pfizer is now launching several potential blockbusters in cancer and immunology. With limited patent losses and fewer older drugs, Pfizer is poised for steady growth (excluding the more volatile coronavirus-related product sales) before a round of major patent losses hits in 2028.
Campbell
- Price/Fair Value: 0.56
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Standard
- Industry: Packaged Foods
Campbell earns a wide moat rating thanks to its cost advantages and brands, which include its namesake brand, Pace, Prego, and Swanson, among others. We think Campbell’s strategy is sound, observes Morningstar director Erin Lash. By leveraging technology, data insights, and artificial intelligence, the company brings products that consumers value to the shelf in a timely fashion. “We believe Campbell remains committed to extracting inefficiencies from its supply chain and distribution network, optimizing direct-to-store routes, and investing in automation,” she adds. Campbell recently laid out plans to unlock $250 million in savings through fiscal 2028, on top of the $950 million it realized the past few years. Campbell stock is trading 44% below our $61 fair value estimate.
Yum China Holdings
- Price/Fair Value: 0.59
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Standard
- Industry: Restaurants
Yum China stock is trading at a 41% discount to our fair value estimate of $76 per share. The restaurant sector in China continues to face challenges because of the real estate downturn and a lack of significant economic stimulus, but Morningstar senior analyst Ivan Su believes Yum China has opportunities for restaurant expansion in China’s fast-food industry. Over the longer term, we believe there are several opportunities for Yum China to gain a share in the fragmented $700 billion Chinese restaurant market. Our conviction in rising fast-food penetration is underpinned by three long-term secular trends: the increasing number of office workers, rising disposable incomes, and shrinking family sizes.
Thermo Fisher Scientific
- Price/Fair Value: 0.64
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Exemplary
- Industry: Diagnostics and Research
Next on our list of best stocks to buy now is Thermo Fisher Scientific. The firm is weathering the pullback in global biopharmaceutical spending better than most of its peers. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed Thermo Fisher to retain and grow its wallet share among its customers across all channels, observes Morningstar regional director Alex Morozov. The firm remains in a great position to leverage its share gains in the biopharma channel and capitalize on strong long-term demand. Thermo Fisher stock is trading at a 36% discount to its fair value estimate of $630.
Brown-Forman
- Price/Fair Value: 0.66
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Exemplary
- Industry: Beverages—Wineries and Distilleries
Premium spirits maker Brown-Forman has over 150 years of distilling experience, specializing in Tennessee whiskey and Kentucky bourbon. Morningstar analyst Dan Su observes that Brown-Forman has earned accolades and loyalty from drinkers for distinct flavors and consistent quality, building strong brand equity for its core Jack Daniel’s trademark in the US and globally. Further, the company’s high-end positioning in the whiskey category aligns well with the industry’s premiumization trend. Still, the company must deal with some tax and regulatory headwinds affecting the industry, as well as the proliferation of craft distillers that could chip away at Brown-Forman’s customer base. Shares of Brown-Forman stock are trading 34% below our fair value estimate of $52.
Constellation Brands
- Price/Fair Value: 0.66
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Standard
- Industry: Beverages—Brewers
Constellation Brands rejoins our list of best stocks to buy now. The firm is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the United States, generating 80% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. While overall beer volume in the US has been stagnant, Constellation has capitalized on premiumization tailwinds to drive high-single-digit volume growth in past years. Morningstar analyst Dan Su expects the company’s beer volume growth to remain strong in the coming years, backed by consumer loyalty and a solid innovation pipeline. Constellation Brands stock trades at a 34% discount to our fair value estimate of $274 per share.
West Pharmaceutical Services
- Price/Fair Value: 0.68
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Exemplary
- Industry: Medical Instruments and Supplies
West Pharmaceutical Services is new to our list of best companies to buy. The firm is the global market leader in primary packaging and delivery components for injectable therapeutics. Drug packaging must be manufactured following strict regulatory standards to ensure stability, purity, and sterility of the drug product. West’s strong market share is backed by its reputation for quality and supply chain expertise and reinforced by the high cost of failure for injectable drug packaging. Morningstar senior analyst Jay Lee says the firm’s scale and diversified supply chain are unparalleled and believes that West will be able to maintain its strong market share. Shares of West Pharmaceutical Services stock are trading at a 32% discount to our $310 fair value estimate.
Coloplast
- Price/Fair Value: 0.68
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Exemplary
- Industry: Medical Instruments and Supplies
Medical supply company Coloplast rejoins our list of best stocks to buy now. Coloplast stock looks 32% undervalued relative to our fair value estimate of $14.10 per share. Based in Denmark, Coloplast is a leader in global ostomy and continence care. The firm has a long record of consistent and meaningful innovation that has led to a dominant position in Europe and growth in the US, says Morningstar senior analyst Debbie Wang. Since 2008, the firm has done an admirable job of trimming its cost structure as it focused on profitable growth. Currently, Coloplast is focused on entering new geographies to enhance growth, with an emphasis on the United States.
GSK
- Price/Fair Value: 0.69
- Morningstar Uncertainty Rating: Medium
- Morningstar Capital Allocation Rating: Standard
- Industry: Drug Manufacturers—General
Pharmaceutical company GSK rounds out our list of best companies to buy now. The firm’s innovative new product lineup and expansive list of patent-protected drugs create a wide economic moat, says Morningstar senior analyst Jay Lee, as GSK’s diverse drug portfolio insulates the company from problems with any one product. The strong product pipeline at GSK stems from a shift in strategy; the firm had previously targeted slight enhancements but now focuses on true innovation. GSK is also strategically branching out from developed markets into emerging markets. We expect GSK to be a major competitor in respiratory, HIV, and vaccines over the next decade. GSK stock trades 31% below our fair value estimate of $58 per share.
Find More of the Best Stocks to Invest In Now
You can review all of the companies on our Best Companies to Own list and dig into our methodology, which includes definitions for the key Morningstar metrics included in this article. Those with specific interests can drill down with our Best International Companies to Own, Best Sustainable Companies to Own, and Best Innovative Companies to Own lists, too. And as we outline here, we suggest that you focus your research on the undervalued stocks of the companies on these lists.
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