The 10 Best Companies to Invest in Now

Fears over artificial intelligence disruption have sparked volatility across multiple industries that investors worry could be fully upended by new technology. In addition, the war in Iran has added further uncertainty to the financial markets.

For now, the US market is looking less expensive, and more high-quality companies are looking undervalued.

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 Invest in Now

The 10 most undervalued stocks from our Best Companies to Own list as of April 27, 2026, were:

1. Campbell’s CPB
2. CoStar Group CSGP
3. Coloplast CLPBY
4. Broadridge Financial Solutions BR
5. SAP SAP
6. Clorox CLX
7. Sony Group 6758
8. Yum China YUMC
9. Equifax EFX
10. RELX REL

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 April 27, 2026.

Campbell’s

• Morningstar Price/Fair Value: 0.37
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Packaged Foods

Packaged foods 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 63% below our fair value estimate of USD 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 strictly managing costs. To further these efforts, Campbell’s recently outlined plans to unlock USD 375 million in savings through fiscal 2028 (up from USD 250 million previously) and now also sees an extra USD 100 million in overhead reductions. This is in addition to the USD 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 USD 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 USD 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.

CoStar Group

• Morningstar Price/Fair Value: 0.48
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Real Estate Services

CoStar Group is a leading provider of commercial real estate data and marketplace listing platforms. The stock is trading at a 52% discount to our fair value estimate of USD 76 per share.

CoStar Group’s business is built around a proprietary database of commercial real estate information that the company has developed and enhanced for more than 35 years. This database is by far the best in the industry and forms the bedrock of most of the products offered by the firm. The firm’s proprietary data powers its analytic and information services and provides content for most of its online marketplaces. The company has six main business lines: multifamily, CoStar Suite, LoopNet, other marketplaces, information services, and residential, in order of revenue contribution.

Addressing these in sequence, the multifamily segment contributes about 35% of revenue, and consists of various apartment listing platforms such as Apartments.com. We expect robust revenue growth in this segment on the back of higher penetration rates, increased pricing power, and incremental service offerings.

CoStar Suite, an integrated suite of online service offerings that includes information about space available for lease or sale, comparable sales and leasing information, tenant and ownership information, internet marketing services, analytical capabilities, information about industry professionals, and industry news, also comprises about 35% of revenue. We expect healthy future growth in this segment from above-inflation price increases, upselling opportunities, growth in its user base, and international expansion.

The long tail of CoStar’s other business includes LoopNet (around 10% of sales), a leading online marketplace for CRE listings, other revenue (also around 8%), including subsidiary marketplaces like Ten-X, BizBuySell, and Lands of America, residential (7%), a recently entered marketplace business spearheaded by Homes.com and Homesnap, and information services (5%).

We appreciate the firm’s strong competitive positioning and believe that its efforts to diversify revenue streams, with moves like its Homes.com acquisition, provide interesting optionality, extending the firm’s prospective growth runway. Still, the residential foray looks beyond the firm’s core competency and has proved to be an expensive and value-dilutive proposition to date.

Read more about CoStar Group here.

Coloplast

• Morningstar Price/Fair Value: 0.51
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Medical Instruments & Supplies

Next on our list of the best stocks to buy is Coloplast. Coloplast is a leading global competitor in ostomy management and continence care. The stock is trading at a 49% discount to our fair value estimate of USD 12.20 per share.

Based in Denmark, Coloplast is a leader in global ostomy and continence care. The firm has made inroads into the concentrated urology and fragmented woundcare markets, but it remains a peripheral player there. In contrast, Coloplast has a long record of consistent and meaningful innovation in ostomy and continence care that has led to a dominant position in Europe and steady growth in the US. Since 2008, the firm has done an admirable job of trimming its cost structure as it focused on profitable growth. After shifting the majority of its production to Hungary, China, and Costa Rica, Coloplast now enjoys a gross margin that beats that of rival Convatec by more than 1,150 basis points. Currently, Coloplast is altering its emphasis to enhance growth by entering new geographies, with an emphasis on the United States.

We’ve long been impressed with the firm’s ability to provide thoughtful, user-friendly improvements to its ostomy and intermittent catheters, which have won over end users. Most recently, Coloplast has upped its game with the incorporation of more sophisticated technology in its supplies and corresponding investment in clinical studies to demonstrate the value of these improvements. For example, new intermittent catheter Luja empties the bladder more fully to reduce the ever-present risk of urinary tract infections.

We are less keen on Coloplast’s woundcare segment, where competitive product launches abound. Coloplast’s woundcare portfolio had historically centered on low-tech foam, leaving the firm more vulnerable as advanced woundcare has moved toward hydrofiber and antibacterial products. Further, as with all competitors in this market, Coloplast faces relatively low switching costs for customers. Additionally, the majority of woundcare products are sold to providers (versus directly to patients themselves), which means there is greater pricing pressure from group purchasing organizations and government-sponsored tenders. Even Coloplast’s acquisition of innovative Kerecis fish skin has become caught up in Medicare’s efforts to rein in reimbursement for skin substitutes.

Read more about Coloplast here.

Broadridge Financial Solutions

• Morningstar Price/Fair Value: 0.54
• Morningstar Uncertainty Rating: Low
• 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 46% undervalued and has a fair value estimate of USD 290 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 USD 410 million in 2016 and RPM Technologies for USD 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 USD 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 Financial Solutions here.

SAP

• Morningstar Price/Fair Value: 0.56
• 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. This cheap stock looks 44% undervalued and has a fair value estimate of EUR 265 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.

Clorox

• Morningstar Price/Fair Value: 0.59
• 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 41% discount to our fair value estimate of USD 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. 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 USD 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 USD 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 USD 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.

Sony Group

• Morningstar Price/Fair Value: 0.62
• 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 38% undervalued and has a fair value estimate of JPY 5,000 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.

Yum China

• Morningstar Price/Fair Value: 0.63
• 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. This cheap stock looks 37% undervalued and has a fair value estimate of USD 76 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 due to 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.

Equifax

• Morningstar Price/Fair Value: 0.63
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Consulting Services

Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the US. The stock is trading at a 37% discount to our fair value estimate of USD 270 per share.

Along with TransUnion and Experian, Equifax is one of the Big Three US credit bureaus. Given the fixed costs inherent in a data-intensive business, Equifax has been able to enjoy strong operating leverage from incremental revenue. As the US credit bureau market is relatively mature, the company has been adding new capabilities and expanding its geographic footprint organically and through acquisitions. As an example of its bolt-on acquisition strategy, Equifax purchased e-commerce fraud prevention platform Kount for USD 640 million in 2021. Outside the US, Equifax has international operations in both developed and developing countries. The acquisition of Boa Vista in 2023 gave Equifax entry into Brazil.

Equifax’s star in recent years has been its workforce solutions business, which is now its largest segment. Workforce solutions include income verification, primarily for mortgages. We expect Equifax’s competitive position to persist as the large amount of existing records and the difficulty of convincing employers to share employee information would be too tough for new entrants to overcome. We expect Equifax to focus on expanding use cases of income verification beyond mortgages to autos, cards, government services, and employment screening. Workforce solutions also include employer services, which consist of employee onboarding solutions, I-9 management, tax form services, and unemployment claims processing. Growth by acquisition in workforce solutions has also been a focus, most notably with its USD 1.8 billion deal to buy Appriss Insights.

Equifax’s reputation took a beating after a well-publicized data breach in 2017. This wasn’t the first time Equifax had suffered a data breach; however, the depth and breadth of the breach created ire among the public and showed that the company wasn’t prepared to handle customer data securely. Since then, Equifax has invested heavily in cybersecurity and incurred significant legal and product liability costs. In our view, Equifax has largely put the episode behind it.

Read more about Equifax here.

RELX

• Morningstar Price/Fair Value: 0.64
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Specialty Business Services

Specialty business services firm RELX rounds out our list of best stocks to buy. RELX is a global provider of information-based analytics and decision tools for professional and business customers in various industries. The stock is 36% undervalued relative to our fair value estimate of GBP 4,200 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% 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 midsingle-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.

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.