Morningstar 10 Undervalued Stocks
If you’re looking for investment opportunities that might not be on everyone’s radar, Morningstar has some intriguing options. Despite the Morningstar US Stock Market Index’s impressive 13% climb in the first nine months of the year, the stocks it covers were still trading at an 8% discount to their fair value estimates as of September 29th. This presents a unique investment opportunity. Let’s delve into Morningstar’s top 10 undervalued stock picks for the fourth quarter, listed alphabetically.
Table of Contents
Albemarle (ALB) – The Lithium Leader
Morningstar Moat: NarrowMorningstar Fair Value Estimate: 0Friday’s Closing Price: 9.85
In a world that’s increasingly embracing electric vehicles (EVs), Albemarle, the world’s largest lithium producer, holds a special position. Lithium is a central element in EV batteries, and as of 2022, battery electric vehicles represented nearly 10% of global auto sales, up from a little less than 6% in 2021. Morningstar analyst Seth Goldstein is bullish on Albemarle, calling lithium their preferred resource stock pick for EV batteries.
Anheuser-Busch InBev (BUD) – Cheers to Opportunity
Morningstar Moat: WideMorningstar Fair Value Estimate: Friday’s Closing Price: .80
Anheuser-Busch InBev, the beer brewing giant, is another intriguing option. Morningstar gives it a wide moat rating, indicating a strong competitive advantage. With a fair value estimate of and a Friday closing price of .80, there’s room for growth.
Charles Schwab (SCHW) – Your Gateway to Securities
Morningstar Moat: WideMorningstar Fair Value Estimate: Friday’s Closing Price: .50
For those interested in the world of securities, Charles Schwab is a reputable choice. With a wide moat rating and a fair value estimate of , it’s trading below its potential.
Federal Realty Investment Trust (FRT) – Real Estate Opportunity
Morningstar Moat: NoneMorningstar Fair Value Estimate: 2Friday’s Closing Price: .90
Real estate investment trusts (REITs) can offer stable returns, and Federal Realty Investment Trust is no exception. Despite having no moat, Morningstar values it at 2, making it an attractive option.
Illumina (ILMN) – Analyzing Genetic Potential
Morningstar Moat: NarrowMorningstar Fair Value Estimate: 9Friday’s Closing Price: 0
Illumina, a provider of tools and services to analyze genetic material, plays a crucial role in the field of genetics. With a narrow moat and a fair value estimate of 9, it’s a potential growth stock in a rapidly evolving industry.
ManpowerGroup (MAN)
Fulfilling Workforce Demands Morningstar Moat: Absent Morningstar Fair Value Estimate: Closing Price on Friday: $0.05.05.05.05.05.05.05
ManpowerGroup, a prominent staffing agency, assumes a pivotal role in the labor market. Despite the absence of a competitive edge, Morningstar appraises its value at , signifying potential growth within the staffing sector.
Nordstrom (JWN)
Department Store Prospects Morningstar Moat: Limited Morningstar Fair Value Estimate: $0.20.20.20 Closing Price on Friday:.20 Closing Price on Friday:.20.20 Closing Price on Friday:.20 Closing Price on Friday: $0.20
Nordstrom, the venerable department store chain, harbors latent opportunities despite its limited competitive advantage. With a fair value estimate of With a fair value estimate of With a fair value estimate of With a fair value estimate of $0.20 and a Friday closing price matching it, it warrants consideration for discerning value investors..20 and a Friday closing price matching it, it warrants consideration for discerning value investors..20 and a Friday closing price matching it, it warrants consideration for discerning value investors..20 and a Friday closing price matching it, it warrants consideration for discerning value investors.
Norfolk Southern (NSC)
Paving the Way for Expansion Morningstar Moat: Extensive Morningstar Fair Value Estimate: Closing Price on Friday: .50
Norfolk Southern, a well-administered railroad enterprise, presents an alluring prospect for investment. Morningstar anticipates long-term operational efficiency improvements as the company optimizes its network services.
Pinterest (PINS)
Navigating the Social Media Landscape Morningstar Moat: Limited Morningstar Fair Value Estimate: $0.05.05 Closing Price on Friday:.05 Closing Price on Friday:.05.05 Closing Price on Friday:.05 Closing Price on Friday: $0.05
Amidst the realm of social media, Pinterest distinguishes itself. Possessing a limited competitive advantage and a fair value estimate of Possessing a limited competitive advantage and a fair value estimate of Possessing a limited competitive advantage and a fair value estimate of Possessing a limited competitive advantage and a fair value estimate of $0.05, it could be an inconspicuous choice for astute investors..05, it could be an inconspicuous choice for astute investors..05, it could be an inconspicuous choice for astute investors..05, it could be an inconspicuous choice for astute investors.
Walt Disney (DIS)
An Enchanting Investment Opportunity Morningstar Moat: Extensive Morningstar Fair Value Estimate: Closing Price on Friday: $0.95.95.95.95
Disney‘s adaptation in response to the ever-evolving media industry is commendable. With a significant competitive advantage and a fair value estimate of, it stands out as a strong candidate for long-term development, especially in light of Disney+ and ESPN’s successes.
In summation, a multitude of prospects abound across diverse sectors within Morningstar’s roster of discounted stocks for the fourth quarter. However, it is crucial to undertake thorough study and match your options with your investing objectives before making any investment decisions.. The market may exhibit volatility, but these equities indeed harbor potential.
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