3 Undervalued Stocks That Aren’t Value Stocks or Growth Stocks
These cheap stocks possess characteristics of both.
Susan Dziubinski: Hi, I’m Susan Dziubinski, co-host of The Morning Filter podcast. On a recent episode, Morningstar’s Chief US Market Strategist Dave Sekera discussed attractive stocks to buy that share some characteristics with growth stocks and other characteristics with value stocks. The Morningstar Style Box classifies such stocks as core stocks. His stock picks were Intercontinental Exchange ICE, American Tower AMT, Northrop Grumman NOC, Hershey HSY and Amazon AMZN.
Today, we’re focusing on three more undervalued stocks that are a little bit growth and a little bit value, too.
3 Undervalued Stocks with Growth and Value Qualities
Our first undervalued stock that possesses qualities of both value and growth is CarMax KMX. CarMax is the used-vehicle expert, and we think the company has carved out a narrow economic moat thanks to intangible assets and a cost advantage. We appreciate new CEO Keith Barr’s plan to cut costs and make online shopping easier. Details will be unveiled at an investor event in the fall. CarMax stock is up a lot this year, but we think it has more room to run. We assign the stock a $96 fair value estimate.
Read Morningstar’s full report on CarMax.
Our second undervalued stock with both value and growth characteristics is Westlake WLK. Westlake is a large, integrated producer of vinyl materials and building products, and it’s actually new to Morningstar analysts’ coverage list. About 60% of Westlake’s sales mix is tied to commodity petrochemicals and 40% to building materials. Westlake’s forward integration strategy helps stabilize its margin profile and profitability over the cycle. We think Westlake stock is worth $114.
Read Morningstar’s full report on Westlake.
Our final cheap stock with value and growth traits is Zebra Technologies ZBRA. The company is the largest provider of automatic identification and data capture technology to enterprises. We think it has built a narrow economic moat due to switching costs as the company’s solutions get deeply embedded in customer workflows and processes. We like the firm’s wide portfolio and its ability to tailor large solutions to specific customer needs. We think the stock is worth $330.
Read Morningstar’s full report on Zebra Technologies.
For more stock ideas, be sure to tune in to The Morning Filter wherever you get your podcasts and visit Morningstar.com, too.
Morningstar senior analysts William Kerwin and David Whiston and analyst Christian Fleming provided the research behind this segment.
Watch 3 New Analyst Picks for the Third Quarter of 2026 for more from Susan Dziubinski.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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