Updated: Here Are New Best Cheap Stocks to Buy Now According to Morningstar
Dec 29, 2023
Again, despite the current surge in the S&P 500, there may be opportunities for investors looking to increase their equity exposure. This may cause you to reconsider investing in the best cheap stocks to buy now. A recent report from Morningstar highlighted the ten most undervalued wide-moat stocks, with the research firm assigning wide moats to companies they believe possess competitive advantages that will persist for at least two decades.
Among the prominent names on the list, Etsy stands out. The digital marketplace for artisanal goods has been undergoing a strategic effort to streamline its workforce, a move seen by Morningstar analyst Sean Dunlop as calculated and potentially beneficial as consumer spending is expected to recover by the second half of 2024.
International Flavors & Fragrances, a leading specialty ingredients producer, is also viewed favorably by Morningstar due to its extensive portfolio of value-added products used across a range of industries, from food and beverages to personal care and pharmaceuticals. Its primary sectors, including flavors, fragrances, and health and biosciences, have been identified as areas of growth.
Similarly, the pharmaceutical titan Pfizer was noted for its resilient foundation, built upon diverse drugs generating strong cash flows. Despite recent challenges, Morningstar analyst Damien Conover highlighted the company’s size as a significant advantage in developing new drugs.
On the tech side, Veeva Systems, a supplier of cloud-based software for the life sciences industry, was praised for its industry-specific solutions. The company’s vertical focus allows it to tailor its products to meet customer needs, providing a competitive edge.
The list also included Zimmer Biomet, a medical device company; Corteva, an agricultural chemicals maker; Teradyne, a testing equipment provider; RTX Corp., an aerospace parts maker; Estee Lauder, a beauty products company; and Campbell Soup, the food company. Each of these companies possesses an intrinsic value that, according to Morningstar, makes them promising investment options and being the best cheap stocks to buy now.