The 10 Best Companies to Invest in Now

June started with hopes and ended with realities, as the history-making SpaceX SPCX IPO was followed by a tech stock pullback, and concerns over artificial intelligence valuations and data center buildouts continue to worry investors. Meanwhile, the ongoing war in Iran continues to add uncertainty to the financial markets.

Morningstar investment specialist Susan Dziubinski notes that despite the market uncertainties, the market overall seems to be shrugging them off. “The S&P 500 is up for the year to date as of today, and small caps have done even better. So while there’s been lots of rotation beneath the surface and uncertainty about inflation, interest rates, the war, and AI, the market’s doing really well,” she says.

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 companies with the most undervalued stock prices today.

10 Best Stocks to Buy Now

The 10 most undervalued stocks from our Best Companies to Own list as of June 29, 2026, were:

1. Campbell’s CPB
2. SAP SAP
3. Zoetis ZTS
4. Yum China YUMC
5. Broadridge BR
6. RELX RELX
7. Clorox CLX
8. Microsoft MSFT
9. Sony Group SONY
10. Tractor Supply TSCO

Here’s a little more about each of the best companies to buy now, including commentary from the Morningstar analysts who cover each company. All data is as of June 29, 2026.

Campbell’s

• Morningstar Price/Fair Value: 0.41
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Packaged Foods

Packaged-food company Campbell’s is the most affordable stock on our list of the best stocks to buy. Over the past 150-plus years, Campbell’s has evolved into a leading domestic packaged-food manufacturer, with a portfolio that extends beyond its iconic red-and-white labeled canned soup. The stock is trading 59% below our fair value estimate of $56 per share.

Over the past six-plus years, Campbell’s has orchestrated significant changes. For one, the portfolio mix has shifted significantly: Its core soup lineup now accounts for just over 25% of total sales (down from more than 40% in fiscal 2017), while snacks account for just over 40% (up from less than 30%). In addition, the firm has worked to drive efficiencies across its supply chain and manufacturing network to boost spending behind its brands and capabilities, thereby solidifying its competitive edge. The byproduct of these efforts has been 1% average annual organic sales growth over the past five years alongside low-teens average adjusted operating margins.

We expect further gains from Campbell’s sound strategic focus—leveraging technology, data insights, and artificial intelligence to bring products to market that align with evolving consumer trends in a timely manner while managing cost pressures. To further these efforts, Campbell’s recently outlined plans to unlock $375 million in savings through fiscal 2028 (up from $250 million previously) and now also sees an extra $100 million in overhead reductions. This is in addition to the $950 million realized over the past few years, driven by optimization, technological enhancements, and reduced indirect spending. Importantly, we expect these efforts to fund investments in consumer-valued innovation and marketing. As such, we forecast 5% of sales will be directed to research, development, and marketing on average annually (approximately $550 million). We see this as key to helping ensure its brands keep pace with consumer preferences, underpinning the firm’s intangible-based moat.

We think Campbell’s still seeks inorganic growth opportunities. Most recently, Campbell’s acquired a 49% stake in La Regina, maker of Rao’s sauces. This follows the 2024 acquisition of Sovos Brands, which generates around $1 billion in annual sales. We see its exposure to the premium sauce aisle complementing its lower-priced Prego brand and benefiting from Campbell’s financial resources and entrenched retailer relationships. This addition should spur distribution gains as the integration progresses, juicing its sales prospects.

Read more about Campbell’s here.

SAP

• Morningstar Price/Fair Value: 0.49
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Software - Application

Founded in Germany in 1972 by former IBM employees, SAP is the world’s largest provider of enterprise application software. The stock is trading at a 51% discount to our fair value estimate of $317 per share.

SAP is the world’s largest provider of enterprise application software and global market leader in enterprise resource planning software. The company earns revenue by selling subscriptions for its various cloud-based software-as-a-service products as well as licenses and maintenance fees for on-premises software, which are now being largely phased out. Besides its core ERP products such as S/4HANA, SAP offers well-known back-office software products such as Concur for travel and expense management and Ariba for procurement.

The company was late to the cloud for ERP software but now offers two compelling products: RISE with SAP, which is the private-cloud edition designed for SAP’s large enterprise customers that are transitioning from their SAP on-premises ERP (ECC) to SAP S/4HANA; and GROW with SAP, which is the public cloud edition that is designed for midmarket companies with less complex requirements. We think GROW with SAP fills an important void in SAP’s product offering as previously SAP’s ERP software was often unattractive to smaller customers given the implementation costs were just too high. With the launch of these new products, cloud revenue is growing swiftly and SAP is capturing many new midmarket customers.

SAP is following a land and expand strategy, which is common in the enterprise software market. RISE with SAP and GROW with SAP are the land products after which the company then upsells and cross-sells more SAP products to these customers, which is much easier in a cloud-based model. The company has yet to release its latest long-term ambitions but expects revenue growth to accelerate at least through 2027, along with rising margins as the cloud business reaches efficient scale.

Read more about SAP here.

Zoetis

• Morningstar Price/Fair Value: 0.52
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Drug Manufacturers - Specialty & Generic

Next on our list of the best stocks to buy is Zoetis. Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The stock is trading at a 48% discount to our fair value estimate of $140 per share.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on the impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

The animal health industry had long been largely ignored because these businesses were buried within larger human health companies, but no longer. It has many attractive characteristics, including cash-pay buyers, a fragmented customer base, relatively low development costs, and opportunities to introduce novel therapies. Because of the fragmented and cash-pay customer base, animal drugmakers hold significant pricing power. On the human health side, firms are traditionally at the mercy of payers. Government payers or large managed care firms with pharmacy benefit managers have more power to force generic utilization, squash price increases, and even, in extreme cases, extract sizable rebates from drug manufacturers. However, animal health products are purchased by a fragmented group of protein producers, veterinarians, and pet owners, allowing very little bargaining power over the highly concentrated animal health firms.

This industry also benefits from favorable growth tailwinds that should allow Zoetis to increase companion animal revenue at a high single-digit long-term growth rate. Zoetis has benefited from pet owners’ increasingly strong relationships with pets as members of the family, which drastically increases their willingness to pay for expensive treatments. However, heightened competition from Elanco and Merck has entered the picture, which we think can eat into Zoetis’ key parasiticide and dermatology franchises. This puts more pressure on the firm to develop and launch innovative therapies, which has been one of Zoetis’ strengths.

Read more about Zoetis here.

Yum China

• Morningstar Price/Fair Value: 0.53
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Restaurants

Yum China is the largest restaurant operator in China, with over 18,000 locations and USD 12 billion in systemwide sales as of 2025. The stock is trading at a 47% discount to our fair value estimate of $77 per share.

The Chinese restaurant sector continues to face headwinds from the real estate downturn and a lack of economic stimulus, affecting consumer spending. In this environment, we recommend that investors focus on companies that possess the scale to be more aggressive on pricing, as value-oriented players typically perform better during economic downturns. A healthy balance sheet is also crucial.

Yum China is well-positioned to gain share in the fragmented Chinese restaurant market, where chain restaurants account for only about 20% of China’s restaurant spending, versus roughly 35% globally and 60% in the US, underscoring a long runway for consolidation that should disproportionately benefit Yum China.

Despite current economic headwinds, we remain confident in the long-term growth of the quick-service restaurant segment, driven by three secular trends: 1) the increasing number of office-based workers, 2) rising disposable incomes, and 3) shrinking family sizes.

Looking ahead, we expect the company to meet its 2026-28 targets, including: 1) mid- to high-single-digit system sales compound annual growth rates, 2) double-digit CAGR in net new stores, 3) double-digit growth in free cash flow per share, and 4) returning 100% of free cash flow to shareholders.

We believe these goals are achievable by: 1) expanding into thousands of lower-tier towns that currently lack KFC, 2) broadening Pizza Hut’s footprint in cities that have KFC but not Pizza Hut, aided by the more budget- and takeout-friendly Pizza Wow format, and 3) accelerating franchise expansion, particularly in protected locations, to speed market entry.

Admittedly, some of Yum China’s nascent brands have underperformed, partly because of the macroeconomic slowdown. That said, we continue to view Lavazza as a high-quality brand with differentiated premium coffee positioning—an opportunity made more attractive by Starbucks’ recent challenges in China. With the group’s in-house supply chain lowering food costs, we expect future Lavazza growth to be profitable; the brand already achieved a 6% restaurant margin in the third quarter of 2025.

Read more about Yum China here.

Broadridge

• Morningstar Price/Fair Value: 0.53
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Information Technology Services

Broadridge Financial Solutions, which was spun off from Automatic Data Processing in 2007, is a leading provider of investor communication and technology-driven solutions to banks, broker/dealers, traditional and alternative-asset managers, wealth managers, and corporate issuers. This cheap stock looks 47% undervalued and has a fair value estimate of $255 per share.

Broadridge Financial Solutions has been the dominant proxy and interim services provider for broker/dealers for more than 20 years. Its regulated proxy and interim business is its crown jewel, and a disproportionate amount of its net income comes from its fiscal third and fourth quarters during proxy season. Broadridge generates over 30% of its fee revenue and EBITDA from its global technology and operations segment, which provides securities processing solutions. Broadridge has benefited from higher engagement of retail investors through higher position growth and elevated trading volume.

Since its spinoff from Automatic Data Processing in 2007, Broadridge has streamlined its operations and expanded into adjacent markets. After years of losses in its clearing business, Broadridge sold it to Penson Worldwide in 2010. Expanding on its mailing, data security, and processing capabilities, Broadridge has completed over 30 acquisitions since 2010. Notable purchases include DST’s North American customer communications business for $410 million in 2016 and RPM Technologies for $300 million in 2019. The NACC business provides print and digital communication solutions, content management, postal optimization, and fulfillment to a variety of sectors, including financial services, utilities, and healthcare. RPM provides enterprise wealth-management software solutions and services. In 2021, Broadridge acquired Itiviti, a provider of order and execution management trading software and order routing, networking, and connectivity solutions, for $2.5 billion, which was pricey, in our view.

During its December 2023 investor day, Broadridge laid out three-year annual goals including recurring revenue growth of 7%-9% (organic 5%-8%), adjusted operating margin expansion of at least 50 basis points, and adjusted earnings per share growth of 8%-12%. These targets are similar to its prior three-year goals, which Broadridge largely achieved.

Read more about Broadridge here.

RELX

• Morningstar Price/Fair Value: 0.55
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Specialty Business Services

RELX is a developer of information-based analytics and decision tools designed to support research, risk assessment, legal work, and business operations. The stock is trading at a 45% discount to our fair value estimate of $57 per share.

RELX, based in the UK, is a global provider of business information, analytics, and decision-making tools for professionals in various industries. It generates revenue mainly by creating and selling access to curated information databases, analytics, and journals. In addition, RELX organizes major events such as trade shows and conferences.

Nearly all information and analytics products are delivered digitally; print is now a minor part of the business. Offerings are sold mainly by subscription, which accounts for around 55% of revenue. However, the majority of the remaining 45% of transactional revenue is under long-term contracts with volumetric elements, so essentially recurring in nature.

The core tenet of RELX’s strategy is to grow its portfolio of information-based analytics and decision-making tools to help its customers be more productive and make better decisions in their day-to-day workflow. The company also aims to expand into higher growth adjacencies and geographies organically and through selective acquisitions. Last, RELX focuses on continuous process innovation to manage cost growth below revenue growth.

RELX does not give hard numbers for its strategic targets. Instead, the company aims to deliver an improving revenue and earnings growth profile and higher returns. In our view, investors can typically expect mid-single-digit organic revenue growth and a 10- to 40-basis-point increase in adjusted operating margin each year in what we think is a low-uncertainty business.

Read more about RELX here.

Clorox

• Morningstar Price/Fair Value: 0.60
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Household & Personal Products

Since its inception more than 100 years ago, Clorox has expanded to operate in a variety of consumer product categories, including cleaning supplies, laundry care, trash bags, cat litter, charcoal, food dressings, water filtration products, and natural personal care products. The stock is trading at a 40% discount to our fair value estimate of $163 per share.

With its entrenched retail standing and unrelenting focus on investing in its leading brand mix, Clorox has withstood the onslaught of pressures from covid, supply chain angst, rampant inflation, and an August 2023 cybersecurity attack. More recently, it has acknowledged a step-up in industrywide promotional spending, particularly in litter, bags, and wraps. Still, we don’t believe this suggests an irrational competitive landscape or that the firm is pursuing a volume-over-value strategy. Instead, from our perspective, Clorox remains resolute in investing to support the long-term health of the business, ensuring its competitive edge remains intact.

The pandemic buoyed e-commerce adoption, and Clorox realized the need to invest to bolster its digital capabilities, earmarking more than $500 million to accelerate productivity improvements, which we view as prudent. We’re encouraged that Clorox’s strategy remains anchored in bringing consumer-valued innovation to market and touting its fare to consumers, which strikes us as particularly critical against the current backdrop of tepid consumer spending and intense competition. Clorox goes to bat against lower-priced private-label fare in most categories, but we believe investments in innovation and marketing should help its products stand out on the shelf and deter trade down. This underpins our forecast that Clorox will allocate around 13% of sales annually—just over $1 billion—to research, development, and marketing.

Even with these investments, we believe Clorox is on a path to maintaining the mid-40s gross margin that historically characterized the business (up from the low 30s trough in the second quarter of fiscal 2022, when cost inflation proved to be a sizable headwind). And despite the potential hit from tariffs (which management had pegged at $40 million on a 12-month basis, or just a low-single-digit percentage of cost of goods sold), we think Clorox will prudently use a combination of cost-savings endeavors, price pack architecture, and surgical price hikes to dull any lasting hit to the margins.

Read more about Clorox here.

Microsoft

• Morningstar Price/Fair Value: 0.61
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Software - Infrastructure

Microsoft develops and licenses consumer and enterprise software. The stock is trading at a 39% discount to our fair value estimate of $600 per share.

Microsoft is one of three public cloud providers that can deliver a wide variety of PaaS/IaaS solutions at scale. Based on its investment in OpenAI, the company has also emerged as a leader in AI. Microsoft has also enjoyed great success in upselling users on higher-priced Office 365 versions, notably to include advanced telephony features. These factors have combined to drive a more focused company that offers impressive revenue growth with high and expanding margins and deepening ties with customers.

We believe that Azure is the centerpiece of the new Microsoft. Even though we estimate it is already an approximately $75 billion business, it is still growing at approximately 30% annually. Azure has several distinct advantages, including that it offers customers a painless way to experiment and move select workloads to the cloud, creating seamless hybrid cloud environments. Since existing customers remain in the same Microsoft environment, applications and data are easily moved from on-premises to the cloud. Microsoft can also leverage its massive installed base of all Microsoft solutions as a touch point for an Azure move. Azure also is an excellent launching point for secular trends in AI, business intelligence, and Internet of Things, as it continues to launch new services centered around these broad themes.

Microsoft is also shifting its traditional on-premises products to become cloud-based SaaS solutions. Critical applications include LinkedIn, Office 365, Dynamics 365, and the Power Platform, with these moves now beyond the halfway point and no longer a financial drag. Office 365 retains its virtual monopoly in office productivity software, which we do not expect to change in the foreseeable future. Lastly, the company is also pushing its gaming business increasingly toward recurring revenues and residing in the cloud. We believe that customers will continue to drive the transition from on-premises to cloud solutions, and revenue growth will remain robust with margins continuing to improve for the next several years.

Read more about Microsoft here.

Sony Group

• Morningstar Price/Fair Value: 0.63
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Consumer Electronics

Sony Group is a conglomerate with consumer electronics roots, which not only designs, develops, produces, and sells electronic equipment and devices but also is engaged in content businesses, such as console and mobile games, music, and movies. This cheap stock looks 37% undervalued and has a fair value estimate of $32.50 per share.

As technologies and consumer preferences change rapidly, it is generally difficult for consumer electronics companies to build an economic moat. The replacement cycle for digital appliances is usually four to six years, but as most products are commoditized, it is difficult for manufacturers to build an ecosystem that prevents customers from switching to other brands. As a result, Sony’s profitability on electronics had been unstable in the past, while its music, movies, and financial-services businesses have generated solid results.

Over the past decade, Sony has transformed its business model to enable more solid and stable growth by reducing the volatility of the consumer electronics business and by aggressively investing in acquiring content for its entertainment businesses such as music, movies, and games.

In the consumer electronics business, profits are generated from digital cameras and audio equipment, where Sony has strengths, while the TV business is thoroughly focused on avoiding losses by focusing on premium products and strictly managing inventories.

In the music and movie businesses, Sony has been able to seize growth opportunities, such as the expansion of the streaming market, by expanding its content and exploring new artists.

The image sensor business has the largest global market share. The majority of sales come from the mobile market, which is benefiting from the strong demand for improved image quality in smartphone cameras. However, unlike the entertainment businesses, image sensors require high capital investment and research and development, and with such high fixed costs, we believe the profitability of the business is not high enough.

PlayStation is Sony’s largest revenue-generating business. While user migration from PS4 to PS5 is progressing well, rising game development costs and competition from other platforms such as Steam are becoming a concern for the business.

Read more about Sony Group here.

Tractor Supply

• Morningstar Price/Fair Value: 0.65
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Specialty Retail

Specialty retail firm Tractor Supply rounds out our list of best stocks to buy. Tractor Supply is the largest operator of retail farm and ranch stores in the United States. The stock is 35% undervalued relative to our fair value estimate of $48 per share.

Tractor Supply is the largest consumer farm specialty retailer in the United States, surpassing $15.5 billion in sales in fiscal 2025. The firm has differentiated itself through its products and customer demographics, which provide underlying support to its brand-intangible assets and wide economic moat. At the end of 2025, the store base had grown about 23% over the prior five-year period, to approximately 2,600 locations, including acquired locations from Orscheln and Petsense, but only produced sales and EPS at average annual growth rates over the past three years of 3% and 2%, respectively, with profitability constrained by investments. We forecast the firm will grow to over 3,500 stores by 2035 as it expands into big-box centers in underpenetrated exurbs, with Petsense accounting for roughly 300 units.

The firm competes with big-box retailers like PetSmart and Lowe’s, which also have solid pricing power because of scale and distribution advantages across numerous categories. Tractor Supply also has smaller regional peers that tend to lack its scale and expansive product mix. We believe Tractor Supply derives its success from its evolving customer-led store layout, which makes it a destination store for many of its customers. In addition, since the firm focuses on active do-it-yourself rural consumers, many of its products are higher-end than those found in retailers that focus on casual consumers.

We think Tractor Supply has reached critical mass in its consumer segment, with efficiency gains ahead from category expansions such as side-lot garden centers, pet prescriptions, and fusion-format store updates, which should drive sales and profit growth. Better customer attribution data, improved bargaining power with vendors, and more sophisticated logistics should also improve inventory levels and cash conversion. Additionally, stable gross margins thanks to strong private-label penetration and operating cost leverage from scale should help operating margins average 10.3% throughout our forecast. Despite the strides made, investments to reach the big barn customer and expand the final mile could limit near-term operating margin upside.

Read more about Tractor Supply here.

How to Find More of the Best Stocks to Buy

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.