10 Best Growth Stocks to Buy for the Long Term

Growth stocks benefited from excitement around the artificial intelligence buildout in 2025. But as anxiety about AI disruption took hold, investors shifted to the value category in 2026. This created some buying opportunities among undervalued growth stocks this spring.

Since then, growth stocks’ valuations have risen, but they remain a part of a balanced portfolio. “At this point, by category, valuations are broadly balanced, and we think investors should move to an equal weighting across value, core, and growth,” says Morningstar Chief US Market Strategist Dave Sekera in his third-quarter stock market outlook.

Over the past 12 months, the Morningstar US Growth Index rose 11.4%, while the Morningstar US Value Index gained 26.7%.

10 Best Growth Stocks to Buy for the Long Term

The 10 most undervalued growth stocks from Morningstar’s Best Companies to Own list as of Aug. 3, 2026, were:

1. SAP SAP
2. Ferrovial FER
3. TSMC TSM
4. Tradeweb Markets TW
5. Amphenol APH
6. Rollins ROL
7. Bentley Systems BSY
8. Autodesk ADSK
9. Ecolab ECL
10. TransDigm Group TDG

To come up with our list of the best growth stocks to buy for the long term, we screened for:

• Stocks that land in the growth portion of the
  Morningstar Style Box
  .
• Stocks from companies included on Morningstar’s list of the Best Companies to Own. Companies on this list have wide
  Morningstar Economic Moat Ratings
  and predictable cash flows, and they are run by management teams that make smart capital-allocation decisions.
• Stocks that are undervalued, as measured by Morningstar’s
  fair value estimate
  .

Here’s a little more about each of these growth stocks for the long term, including commentary from the Morningstar analysts who cover each company. All data is as of Aug. 3, 2026.

SAP

• Morningstar
  Price/Fair Value
  : 0.63
• Morningstar
  Uncertainty Rating
  : Medium
• Morningstar Style Box: Large Growth
• Morningstar
  Capital Allocation Rating
  : Standard
• Industry: Software—Application

SAP is the most affordable stock on our list of the best growth stocks to buy. 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 37% discount to our fair value estimate of $302 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.

Ferrovial

• Morningstar Price/Fair Value: 0.73
• Morningstar Uncertainty Rating: Low
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Engineering and Construction

Ferrovial is a global transportation infrastructure investor, developer, and operator, with a strong presence in North American toll roads. The stock is trading at a 27% discount to our fair value estimate of $91 per share.

Ferrovial makes the bulk of its earnings by investing in, designing, building, and operating transport infrastructure. Its primary asset is its stake in the 99-year lease to operate the 407 Express Toll Route that traverses the greater Toronto area. In recent years, Ferrovial has meaningfully shifted its portfolio toward North American assets, partly funded by exiting UK airports (Heathrow Airport and AGS), hoping to take advantage of superior asset economics and more lenient regulation than in Europe and a larger pipeline of public/private partnerships. We estimate roughly 85% of Ferrovial’s value is derived from its toll roads, 9% from airports, and the balance from construction businesses.

Rotating assets in its portfolio is key to ongoing shareholder value creation; Ferrovial seeks to sell mature assets, such as its stake in Heathrow Airport, to fund new projects such as the New Terminal One at John F. Kennedy International Airport. Ferrovial focuses on greenfield and yellowfield high-complexity concessions in areas with good economic prospects, where it believes it can earn a “pioneer premium” and grow tariffs and traffic ahead of inflation. It prefers to source deals through bilateral negotiations rather than competitive bidding, and it underwrites projects with at least a double-digit post-tax equity internal rate of return. The characteristics it looks for include long-term, back-end-weighted cash flows and the flexibility to set toll rates as it pleases. It believes its operational experience in the space enables it to employ tools such as dynamic pricing to maximize the asset’s value once operational.

Ferrovial operates three construction businesses, Ferrovial Construction (formerly Ferrovial Agroman), Webber, and Budimex, a listed Polish engineering, procurement, and construction firm. These businesses support their concessions business over the entire project lifecycle, and Ferrovial Construction explicitly targets 25% of revenue to come from toll roads and airports. For instance, Ferrovial Construction is managing the project management office for JFK’s New Terminal One and providing construction oversight.

Read more about Ferrovial here.

Taiwan Semiconductor Manufacturing

• Morningstar Price/Fair Value: 0.76
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Semiconductors

Taiwan Semiconductor Manufacturing is the world’s largest dedicated chip foundry, with about 70% market share in 2025. This cheap stock looks 27% undervalued to our fair value estimate of $534 per share.

Taiwan Semiconductor Manufacturing Company is the world’s largest dedicated contract chip manufacturer, or foundry, with over 70% market share as of mid-2026. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns, which hampers profitability.

The rise of fabless semiconductor firms has supported the growth of foundries, which in turn has encouraged increased competition. However, most of these newer competitors are confined to low-end manufacturing due to prohibitive costs and engineering know-how associated with leading-edge technology. To prolong the excess returns enabled by leading-edge process technology, or nodes, TSMC initially focuses on logic products, mostly used on central processing units and mobile chips, then focuses on more cost-conscious applications. This strategy has been successful, illustrated by the fact that the firm is one of the two foundries still possessing leading-edge nodes while dozens of peers lag.

We note two long-term growth factors for TSMC. First, the consolidation of semiconductor firms is expected to create demand for integrated systems made with the most advanced nodes. Second, organic growth of artificial intelligence, Internet of Things, and high-performance computing applications may last for decades. AI and HPC play a central role in quickly processing human and machine inputs to solve complex problems like autonomous driving and language processing, which accentuates the need for more energy-efficient chips. Cheaper semiconductors have made integrating sensors, controllers, and motors to improve home, office, and factory efficiency possible.

Read more about TSMC here.

Tradeweb Markets

• Morningstar Price/Fair Value: 0.80
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid Core
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Capital Markets

Tradeweb Markets is a leading fixed-income trading platform. It focuses primarily on providing electronic trading networks that connect broker/dealers, institutional clients, and retail customers. This affordable growth stock is trading at a 20% discount to our fair value estimate of $127 per share.

Tradeweb operates one of the leading platforms for the electronic trading of fixed-income products and derivatives. Unlike many of its competitors, which tend to focus on a particular bond type or market segment, Tradeweb operates with a broad scope, offering trading in just about anything related to fixed income, including derivatives, as well as some equity exchange-traded funds. We like this strategy because it provides Tradeweb with multiple growth drivers and reduces its exposure to any individual asset class.

Fixed-income markets globally are increasingly moving away from voice-negotiated trading toward electronic platforms because the liquidity and workflow enhancement of these electronic networks promise to lower implicit and explicit trading costs for increasingly expense-conscious firms. Tradeweb has been a major beneficiary of this trend, as its largest competitor is the implicit competition represented by traditional voice-based trading. As bond and derivative markets have shifted, Tradeweb has taken meaningful market share, with its interest rate swap, Treasury, and US corporate bond trading volumes in particular showing strong growth.

We expect the transition to electronic trading networks to continue, as the more liquidity available on these networks, the more attractive they become to traders, drawing in even more volume and creating a virtuous cycle. As Tradeweb rolls out new features such as automated trade execution and portfolio trading, the cost advantages of electronic trading networks over traditional methods continue to grow. With most fixed-income trading still primarily voice-based, Tradeweb has a long runway ahead. We do expect revenue growth to decelerate substantially from an impressive compound annual growth rate of 19.9% over the last three years. Intense market volatility in 2025 drove unusually high volume growth, with Tradeweb’s total volume rising 28% from the prior year. While 2026 has started off strong for Tradeweb, we do not expect this rate of growth to be maintained, and trading conditions should normalize over time. That said, Tradeweb should enjoy revenue growth in the high single digits to low double digits for years to come.

Read more about Tradeweb Markets here.

Amphenol

• Morningstar Price/Fair Value: 0.82
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Electronic Components

Amphenol is a global supplier of connectors, sensors, and interconnect systems. The stock is trading at a 18% discount to our fair value estimate of $200 per share.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. It has numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows Amphenol to expand its top line even in an individual market downturn. We think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

Amphenol provides connectors with high performance and reliability that are specialized for mission-critical applications in harsh environments. As such, we think its customer relationships are very sticky, with customers facing high financial and opportunity costs from switching to another component supplier, as well as the risk of component failure. We believe customers rely on Amphenol as a design partner to supply cutting-edge products and enable new capabilities in end applications. As older products become commoditized, the firm can maintain high prices by introducing new designs for new sockets. As a result of these switching costs and pricing power, we believe Amphenol possesses a wide economic moat.

We expect Amphenol to maintain its diversified end-market structure and expand its technological and geographic breadth through mergers and acquisitions, which have funded about one-third of the firm’s historical top-line growth. We expect artificial intelligence revenue to become the firm’s primary growth driver over the medium term but remain less than half of sales, with excellent placement in server configurations from Nvidia and others. As Amphenol grows, we expect it will maintain its best-in-class operating margins by expanding its decentralized organizational structure. The firm operates through more than 140 general managers who operate with great autonomy to respond to end customers’ needs and manage costs; we think this count will grow as the firm makes acquisitions and expands into new markets.

Read more about Amphenol here.

Rollins

• Morningstar Price/Fair Value: 0.83
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid Core
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Personal Services

Rollins is a global leader in route-based pest control services. Its portfolio of pest-control brands includes the prominent Orkin brand, a market leader in the US and Canada, with near-national coverage. This cheap growth stock looks 17% undervalued and has a fair value estimate of $46 per share.

Rollins is the second-largest pest control firm, operating residential and commercial services primarily in North America. The industry is highly fragmented, with Rollins, Rentokil, and a few smaller global competitors, along with over 40,000 regional and local players worldwide. Rollins’ scale is a cost advantage, as its local route density and ability to spread fixed costs across a larger revenue base contribute to industry-leading margins. The value of its leading brand, Orkin, also creates an intangible asset moat, as it capitalizes on industry-leading awareness to drive organic sales growth at a lower cost.

Rollins continually strives to enhance back-end efficiency and route optimization through its program BOSS, a key component of its nearly 7-percentage-point operating margin increase over the past 15 years. Recently, initiatives focused on improving omnichannel services and the customer experience by making customer and prior treatment information available to field technicians, which we expect will bolster its margins over the next half-decade.

Bolt-on acquisitions are a key component of Rollins’ growth strategy. It completes 30 to 40 acquisitions yearly to bolster route density in its regional markets. While most costs are fixed, they are primarily incurred locally. In turn, to take advantage of scale in servicing, Rollins must also have a regional scale in each market it operates in. When a regional scale is achieved, adding a new customer to an existing route incurs no additional fixed costs and helps maintain margins, which is integral to its strategy and continued margin expansion.

The industry has several tailwinds driving greater demand and organic growth opportunities, including more health-conscious consumers, rising global temperatures that extend pest seasons, greater urbanization, and a preference for services over do-it-yourself. Beyond its leading brand, Orkin, where 50% of new clients don’t look at competitors before purchasing, Rollins reaches customers through channels such as collaborating with homebuilders and conducting door-to-door outreach.

Read more about Rollins here.

Bentley Systems

• Morningstar Price/Fair Value: 0.83
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Small Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Software—Application

Bentley Systems is a software vendor that caters to civil engineers, constructors, and geospatial professionals by enabling design, simulation, and data management of infrastructure assets such as roads and bridges. Bentley currently trades at a 17% discount to our fair value estimate of $43 per share.

After successfully carving out a niche in computer-aided design with its construction-oriented software, MicroStation, Bentley Systems has been continuously expanding its family of offerings beyond the public works and utilities vertical to broaden its total addressable market. We find the opportunities in the resources sector attractive for Bentley Systems. With its 2021 acquisition of Seequent, Bentley now owns an industry-leading geotechnical tool that uncovers the complexities under the surface, a capability that many mining and energy companies are looking for. We think the proportion of revenue contributed by resource customers is on track to reach one-third of the company’s total over the next few years.

Digital twin is an attractive long-term growth opportunity for Bentley Systems. Bentley’s iTwin and Synchro products provide a digital context of infrastructure design, construction, and operations, which translates to stable income throughout the asset’s decades-long lifecycle. That said, it will take time for digital twin solutions to penetrate the infrastructure market, as it will be a long-term evolution in infrastructure engineering. We think Bentley’s leadership in digital twin solutions will gradually reflect in the company’s financials over the long term.

Bentley Systems has nearly completed its sales channel transformation, with over 90% of revenue coming from direct sales channels. Continued investment in its Virtuosity e-store creates a streamlined self-serve experience, significantly reducing the barrier for small and midsize businesses to procure Bentley products. This is especially important for Bentley Systems’ long-term growth as the company lands hundreds of new customers each quarter, most of which are smaller infrastructure contractors. The direct sales channel can also give Bentley Systems more insight into usage patterns, aligning future product development with user needs. High direct sales penetration and a large subscription revenue base are key factors supporting our forecast for Bentley Systems’ double-digit revenue growth over the next decade.

Read more about Bentley Systems here.

Autodesk

• Morningstar Price/Fair Value: 0.88
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Software—Application

Autodesk is a multinational software company best known for pioneering computer-aided design with its AutoCAD product. Nowadays, Autodesk provides design software for a variety of verticals, including architecture and construction, manufacturing, and media and entertainment. This cheap growth stock looks 11% undervalued and has a fair value estimate of $268 per share.

Autodesk has continually innovated its product lineup and has become the industry standard for design software. The company’s latest innovation is centered around its three industry clouds—Forma, Fusion, and Flow—to provide an interconnected experience that accelerates the circulation of design ideas among different stakeholders. Underneath the industry clouds, Autodesk also has a platform services product that allows users to leverage data for customized solutions, unlocking additional productivity.

We think Autodesk’s next-generation industry cloud offerings are leading market solutions that should sufficiently address customers’ needs to digitalize their workflows. Fusion, the manufacturing cloud, should see faster adoption due to Autodesk’s midmarket focus in this category, but the adoption of Forma and Flow can remain a process in the making for years to come, as many customers are comfortable with their existing workflows built on incumbent tools like Revit and Maya.

Besides product innovation, Autodesk also introduced major changes to its go-to-market model in recent years. The new Flex tokens provide occasional users with a more flexible option to access Autodesk software, allowing them to make payments based on the number of days needed. We think the token-based pricing model should incentivize more usage from lower-end customers and customers outside of core design functions. More importantly, tokens are a well-suited pricing scheme for Autodesk’s future AI functionalities, as pay-as-you-go options are often helpful in driving early user adoption. Together with the new transaction model, where Autodesk receives payment directly from customers, we foresee further evolution of the pricing scheme as Autodesk gains more insight into customers’ consumption habits.

We expect the addition of board members nominated by an activist investor to boost Autodesk’s operating efficiency and deliver tangible margin improvements. Sales channel reforms and layoffs are both initial steps toward a larger goal that supports our operating margin expansion forecast of approximately 800 basis points over the next five years.

Read more about Autodesk here.

Ecolab

• Morningstar Price/Fair Value: 0.92
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Specialty Chemicals

The only chemicals company on our list of the best growth stocks to buy now, Ecolab produces and markets cleaning and sanitation products for the industrial manufacturing, data center, hospitality, healthcare, and life sciences markets. It is the global market share leader in this category, and looks 8% undervalued with a fair value estimate of $305 per share.

Ecolab is the global leader in cleaning, sanitation, and water management. For example, it provides products that help its hospitality and food-service customers do laundry and wash dishes. With unmatched scale and a solid razor-and-blade business model, Ecolab’s competitive advantages are strong. The company’s cleaning and sanitation scale dwarfs the competition. Ecolab generates over double the revenue of its largest rival. Ecolab controls roughly 9.5% of the $165 billion global market. Its industries are fragmented, with many markets made up of regional and local competitors. The company is an attractive partner to global hospitality, food-service, and manufacturing firms. We think it will continue to grow through market share gains and expansion into new end markets.

Ecolab uses a razor-and-blade business model by providing customers with cleaning equipment that uses only Ecolab’s proprietary consumables. This model creates a steady stream of consumables revenue. Its installed-base-and-consumables model also leads to high customer switching costs, as clients are generally reluctant to replace equipment and retrain staff.

The company sells directly to customers in most cases and focuses on reducing its clients’ costs in areas such as water, energy, labor, and turnaround time. This generates pricing power and builds customer loyalty.

Ecolab’s water treatment business also benefits from switching costs. We expect fresh water costs will continue to rise around the world. This will make Ecolab’s water management systems, which reduce customer water usage, more valuable, as they lower customer operating expenses. Ecolab should also benefit from growth in data centers and semiconductors, where the company is a leading supplier of water management and cooling technologies. We expect the high-tech water business to be the largest source of incremental profit growth.

Ecolab also operates in life sciences and healthcare, where it sells products and services to pharmaceutical and personal-care product manufacturers and the healthcare industry. The firm should benefit from an aging Western population that requires more healthcare and consumes more pharmaceuticals.

Read more about Ecolab here.

TransDigm Group

• Morningstar Price/Fair Value: 0.92
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Aerospace and Defense

Aerospace and defense company TransDigm rounds out our list of best growth stocks to buy. TransDigm manufactures and services a broad set of specialized parts for commercial and military aircraft. The firm organizes itself in three segments: power and control, airframes, and a small nonaviation segment, which serves mostly off-road vehicles and mining equipment. The stock is 8% undervalued relative to our fair value estimate of $1400 per share.

TransDigm is a holding company with a clear, consistent strategy: Acquire and operate businesses that supply proprietary and highly engineered aerospace components with high aftermarket demand. Its businesses manufacture and sell parts for aircraft, like ignition systems, pumps, actuators, flight controls, and cabin equipment, among other things. Since TransDigm is the only provider of many such products, it has significant pricing power. The firm also operates with a high degree of financial leverage to amplify operating results.

This strategy works because potentially competing parts would have to be licensed by the Federal Aviation Administration to be identical to the original product. Since TransDigm’s designs are proprietary, it is challenging for would-be competitors to prove that their design is identical, and because the parts generally do not cost much compared with the value of the overall aircraft, competitors don’t bother trying to replicate them. These barriers to entry allow TransDigm to extract value from required maintenance and enable the firm to aggressively price its spare parts over the lifecycle of the aircraft that use them.

TransDigm had its IPO in 2006 after 13 years of private ownership, and it still uses classic private equity strategies of creating value: It aims to improve the operations of its target companies by increasing prices and productivity, and it encourages employees to generate new business. TransDigm is highly decentralized and has numerous business units. It encourages business unit leaders to think like owners by setting aggressive targets for managers and allowing them to achieve these goals however they choose.

In fiscal 2024, TransDigm’s revenue was just over 6% of Boeing’s and Airbus’ combined cost of goods sold (leaving aside all the airlines they service in the aftermarket), illustrating what a small part of the overall industry it still represents, even with hundreds of stock-keeping units across dozens of subsidiaries.

Read more about TransDigm here.

Find More of the Best Growth Stocks to Buy

Investors who’d like to extend their search for top growth stocks can do the following:

• Investors who’d rather invest in growth stocks through a managed product like an exchange-traded fund or a mutual fund can find ideas to research further in The Best Growth Funds.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
• Use the Morningstar Investor screener to build a shortlist of growth stocks to research and watch.