In 2024, growth stocks outperformed value stocks by 10 percentage points. However, value stocks have shown more consistent returns in 2025. Morningstar recommended overweighting value stocks due to their attractive discount to fair value compared to overvalued growth stocks. Value stocks are currently more attractive on both absolute and relative value bases.

Morningstar has compiled a list of the top value stocks for long-term investment. These stocks are selected based on their inclusion in the Morningstar Style Box, being part of the Best Companies to Own list for 2025, and trading below Morningstar’s fair value estimates. Some of the best value stocks include Campbell’s, GSK, Thermo Fisher Scientific, Brown-Forman, Constellation Brands, Danaher, Zimmer Biomet, Bristol-Myers Squibb, Merck, and Clorox.

Value stocks are those that trade below their intrinsic worth, often found in established industries with less growth potential. These stocks may pay dividends and be temporarily undervalued due to short-term factors. Morningstar’s Style Box categorizes these stocks based on growth and value metrics, while fair value estimates represent the analysts’ valuation of a stock’s worth.

To find more cheap value stocks, investors can use Morningstar’s Investor screener to compare value stocks based on criteria like price/earnings ratios and return on assets. They can also explore value funds or ETFs for investment opportunities in the best value stocks. The key is to identify undervalued stocks with strong long-term growth potential for a successful investment strategy.

Read more at Morningstar: 10 Best Value Stocks to Invest in for the Long Term