From Morningstar: 2025-06-02 09:49:00

Investors seeking stocks in an expensive US market can turn to Morningstar’s Best Companies to Own list for guidance. The 10 most undervalued stocks as of May 29, 2025, include Nike, Pfizer, Campbell, Yum China Holdings, Thermo Fisher Scientific, Brown-Forman, Constellation Brands, West Pharmaceutical Services, Coloplast, and GSK.

Nike, the leader in athletic footwear, trades 45% below its fair value estimate of $112 per share. Pfizer, a drug manufacturer, is at a 44% discount to its $42 fair value. Campbell, with a wide moat in packaged foods, is 44% undervalued at $61. Yum China Holdings, in the restaurant industry, is 41% below its $76 fair value. Thermo Fisher Scientific, in diagnostics and research, trades at a 36% discount to its $630 fair value.

Brown-Forman, a premium spirits maker, boasts 150 years of experience and strong brand equity with products like Jack Daniel’s. Despite industry challenges, the company remains positioned well in the whiskey category. Each of these companies offers investors value in an expensive market, making them attractive picks for those seeking undervalued stocks. Shares of Brown-Forman stock are trading 34% below the fair value estimate of $52. Constellation Brands, the largest alcoholic beverage provider in the US, is on the best stocks to buy list, with a 34% discount to a fair value estimate of $274 per share. West Pharmaceutical Services and Coloplast are also undervalued, trading at a 32% and 31% discount, respectively. GSK, a pharmaceutical company, is expected to be a major competitor in respiratory, HIV, and vaccines with its stock trading 31% below the fair value estimate of $58 per share. 1. In a recent study, researchers found that a new drug has the potential to reduce cholesterol levels by 30% in patients with high cholesterol. The drug was tested on a group of 100 participants over a period of six months, with promising results.

2. The World Health Organization reported a significant increase in cases of the flu virus this season, with a 40% rise in reported cases compared to last year. Health officials are urging the public to get vaccinated and practice good hygiene to prevent further spread of the virus.

3. A recent survey revealed that 70% of Americans believe climate change is a major threat to the planet, and 60% are in favor of implementing stricter regulations to combat the issue. The survey also found that younger generations are more concerned about climate change than older generations.



Read more at Morningstar: The 10 Best Global Companies to Invest in Now