The 10 Best Companies to Invest in Now

Despite concerns about inflation, spiking bond yields, and the costs of spending on artificial intelligence, stock market returns have shown resilience in the past month.

“The market is undervalued overall, but I do think it is especially vulnerable today because typically you would expect stocks to struggle as interest rates are rising, especially those long-duration growth stocks that are going to be much more sensitive to changes in interest rates,” says David Sekera, Morningstar’s chief market strategist. “But yet if you look at the market performance month to date, even year to date, it’s held up much better than I would’ve thought,” he 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 on this list have significant competitive advantages. We believe the best companies have predictable cash flows and are run by management teams with 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 Sept. 28, 2026, were:

1. Campbell’s CPB
2. Clorox CLX
3. Yum China YUMC
4. RELX RELX
5. Honeywell Aerospace HONA
6. Ferrovial NV FER
7. Otis Worldwide OTIS
8. Broadridge Financial Solutions BR
9. Rollins ROL
10. Sony Group SONY

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 Sept. 28, 2026.

Campbell’s

• Morningstar
  Price/Fair Value
  : 0.48
• 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 52% below our fair value estimate of $41.50 per share.

Over the past 10 years, Campbell’s has orchestrated significant change. For one, its core soup lineup now accounts for just 25% of total sales (down from more than 40% in fiscal 2017), while snacks have grown to nearly 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, to solidify its competitive edge. But despite these efforts, sales growth has proved elusive, with organic sales down at a low-single-digit rate over the past three years. Further, margins have languished, with its 12% adjusted operating margin in fiscal 2026 about 500 basis points shy of the average level achieved in the five years preceding the pandemic.

But the firm isn’t sitting still. Management is taking judicious actions to adjust its workforce, enhance procurement practices, and optimize manufacturing and supply chain networks to eliminate inefficiencies, targeting $500 million in annual cost savings by fiscal 2030. This is in addition to nearly $1 billion realized over the past few years through technological improvements and reduced indirect spending. Importantly, we expect these efforts to fund investments in consumer-valued innovation and marketing. As such, we forecast that, on average, 5% of sales will be directed to research, development, and marketing annually (approximately $550 million).

By leveraging technology, data insights, and artificial intelligence, we believe Campbell’s can bring products to market that align with evolving consumer trends, across its legacy mix and recently acquired brands. We’ve seen this manifest in its Goldfish line, which has returned to growth on the heels of packaging and product innovation and improved marketing. Further, we surmise that Rao’s (which Campbell’s acquired in 2024) and its premium sauce lineup are benefiting from Campbell’s financial resources and entrenched retailer relationships; we think more growth is in store. From where we sit, these investments are key to helping ensure its brands keep pace with consumer preferences, underpinning the firm’s intangible assets-based moat.

Read more about Campbell’s here.

Clorox

• Morningstar Price/Fair Value: 0.53
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Household and 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 47% discount to our fair value estimate of $154 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, we believe Clorox remains committed to long-term investments to maintain its competitive edge.

The pandemic buoyed e-commerce adoption, illuminating the need for Clorox to enhance its digital capabilities. As part of this, management earmarked more than $500 million to accelerate productivity improvements, which we’ve viewed as prudent. And with its ERP rollout finally in the rearview, we think Clorox should begin to benefit from improved decision-making, demand planning, and operational efficiencies. We anticipate that a portion of any savings from these efforts will go toward bringing consumer-valued innovation to market and touting its fare to consumers, which strikes us as particularly critical amid 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—nearly $1.2 billion—to research, development, and marketing.

Beyond operating investments, we believe Clorox is set to maintain the mid-40s gross margin that historically characterized the business (up from its low 30s trough in the second quarter of fiscal 2022, when cost inflation ate into profits). Despite the potential hit from tariffs and higher oil-based derivatives stemming from the conflict in the Middle East, we think Clorox will prudently use a combination of cost-saving endeavors, price pack architecture, and surgical price hikes to dull any lasting hit to the margins.

Read more about Clorox 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 $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, which is weighing on 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: the increasing number of office-based workers, rising disposable incomes, and 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 compound annual growth rate 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.

RELX

• Morningstar Price/Fair Value: 0.58
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Specialty Business Services

RELX develops information-based analytics and decision tools designed to support research, risk assessment, legal work, and business operations. The stock is trading at a 42% 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.

Honeywell Aerospace

• Morningstar Price/Fair Value: 0.60
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Aerospace & Defense

Next on our list of the best companies to invest in now is Honeywell Aerospace, which spun out of Honeywell Technologies in mid-2026 to focus on commercial aerospace and defense manufacturing and development. Its segments include electronic solutions, engines and power systems, and control systems. Shares of this undervalued stock are trading at a 41% discount to our fair value estimate of $256.

Honeywell Aerospace is one of the largest aircraft component and systems suppliers. We think its substantial scale gives it negotiating leverage with aircraft manufacturers, as it provides many systems and can selectively bid on critical components. Given their long service life and the need for recurring overhauls, we see some of Honeywell Aerospace’s components as fitting the razor-and-blade business model, with original equipment sales (sometimes at low or no margins) as the razor and recurring service and parts revenue (often at high margins) as the blades.

Although Honeywell makes turbofan engines like GE, Safran, Pratt & Whitney, and Rolls-Royce, it serves only a small part of the business jet market. In defense, the franchise is concentrated in turboshaft engines for helicopters, which have different performance characteristics than high-thrust commercial engines on larger airframes.

Honeywell Aerospace’s auxiliary power unit franchise, which spans these verticals without equal, does not have quite the same intensity of razor-and-blades aftermarket value as the GE/Pratt/Rolls oligopoly. Nevertheless, of 52,000 commercial, business, and military jets in service, 32,400 have Honeywell APUs. Of the total, 14,800 are GTCP131, and 6,550 are GTCP36. Of the 22,000 business jets in service (large and small), Honeywell Aerospace supplied half of them with its APU, while it supplied only 3,950 with engines—in either the HTF7000 or TFE731 family. All but one of these also runs a Honeywell GTCP36 or RE100 APU. Honeywell’s largest competitor in business jet engines and APUs is Pratt & Whitney Canada, which specializes in smaller turbines.

In defense, the company provides turboshaft engines, power systems, sensors, and specialized communications equipment almost exclusively to government agencies. We expect a flattening rather than a decline in the budgetary environment, as heightened geopolitical tensions are likely to buoy spending despite adding to the federal debt burden. For these reasons, and in addition to existing backlogs, we think Honeywell Aerospace’s businesses can continue to grow despite a potentially slower overall macro environment.

Read more about Honeywell Aerospace here.

Ferrovial

• Morningstar Price/Fair Value: 0.61
• Morningstar Uncertainty Rating: Low
• 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. Shares of this industrials stock are 39% undervalued compared with 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.

Otis Worldwide

• Morningstar Price/Fair Value: 0.63
• Morningstar Uncertainty Rating: Low
• Morningstar Capital Allocation Rating: Standard
• Industry: Specialty Industrial Machinery

Next on our list of the best stocks to buy is Otis Worldwide. Otis is the largest global elevator and escalator supplier by revenue, with around 18% global market share. As the largest global original equipment manufacturer, Otis has amassed an installed base under service that exceeds 2 million elevators. The stock is trading at a 37% discount to our fair value estimate of $105 per share.

Otis is the largest player in the global elevator and escalator industry, operating within a mature, consolidated, and structurally attractive market. The company generates more than 65% of its revenue—and the majority of its profits—from its services business, which benefits from the world’s largest installed base. This entrenched position underpins stable revenue, high margins, and recurring cash flows.

While recent years have seen industry growth dampened by a sharp slowdown in China’s new equipment segment, we believe the outlook is improving. A global modernization cycle is gaining momentum as over 60% of the installed base is now more than 15 years old. This creates a significant opportunity for OEMs to not only capture modernization spending but also recapture lost service contracts, reinforcing long-term customer relationships.

Digital technologies are further strengthening industry economics. Predictive maintenance, remote diagnostics, and data-driven service models enhance operational efficiency while raising customer switching costs, ultimately boosting retention and conversion rates within the service business. Growing awareness around energy efficiency and operating costs is accelerating demand for energy efficient systems—offering up to 70% energy savings.

Otis benefits from industry-leading margins, underpinned by its outsize exposure to the structurally profitable US market and a leaner cost and capital structure relative to more conservatively managed European peers. Its independence as a publicly listed company has enabled a more agile and performance-driven approach to capital allocation and cost efficiency. We believe continued efficiency gains and an ongoing shift in revenue mix toward services will support further margin expansion. These factors underpin our expectation for double-digit earnings growth over the medium term.

Read more about Otis Worldwide here.

Broadridge Financial Solutions

• Morningstar Price/Fair Value: 0.65
• 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 35% undervalued and has a fair value estimate of $250 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.

Rollins

• Morningstar Price/Fair Value: 0.67
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Personal Services

Rollins is a global leader in route-based pest control services, with operations primarily in the US as well as other countries. Its portfolio of pest-control brands includes the prominent Orkin brand, a market leader in the US and Canada, with near-national coverage. The stock is trading at a 33% discount to our 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 30-40 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.

Sony Group

• Morningstar Price/Fair Value: 0.69
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Consumer Electronics

Our list of the best companies to invest in now closes with Sony Group. Sony is a conglomerate with consumer electronics roots, which not only produces electronic equipment and devices but is also engaged in content businesses, such as console and mobile games, music, and movies. This best stock to invest in now is trading at a 31% discount to our fair value estimate of $34 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 in electronics has 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.

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.