3 More Good Stocks to Invest In After Earnings
These cheap stocks from wide-moat companies look attractive today.
Susan Dziubinski: I’m Susan Dziubinski, co-host of The Morning Filter podcast. On a recent episode, Morningstar chief US market strategist Dave Sekera discussed three stocks to invest in after earnings: Coca-Cola KO, Halliburton HAL, and Hershey HSY. You’ll find a link to the podcast episode below if you want to hear more about why Dave likes these stocks.
Today, I’m talking about three more stocks that look good to Morningstar’s analysts after earnings. These stocks are all from wide-moat companies, and they all look undervalued according to Morningstar today.
3 More Good Stocks to Invest In After Earnings
The first good stock to buy after earnings is Fortinet. Morningstar thinks this midsize cybersecurity vendor has carved out a wide economic moat thanks to high customer switching costs and to a network effect associated with its platform approach to cybersecurity. Given the complexity and intensity of cybersecurity threats, we think Fortinet has a long runway for growth, and we forecast revenue to grow at a 14% annual compound growth rate over the next five years. The stock looks cheap according to Morningstar, with shares trading well below our fair value estimate of $108.
Read Morningstar’s full report on Fortinet.
The second good stock to invest in after earnings is LPL Financial. LPL is the largest independent broker/dealer in the US. Morningstar assigns LPL a wide economic moat rating due to switching costs and cost advantages relative to smaller independent broker/dealers. LPL recently acquired Commonwealth Financial Network, and that firm’s advisor service platform will help LPL attract breakaway wirehouse advisors. We expect LPL’s revenue to grow at a 12.9% annual rate over the next 10 years. The stock is undervalued compared to Morningstar’s $504 fair value estimate.
Read Morningstar’s full report on LPL Financial.
The final cheap stock to invest in is Danaher. This large-cap global life sciences and diagnostics company has carved out a wide economic moat with intangible assets and switching costs as its moat sources. Through a series of acquisitions, Danaher has become a top-five player in the fragmented yet stable life sciences and diagnostic tool markets. Investments have strained profit growth this year, but profit growth should accelerate in 2026. And beginning in 2026, we expect organic revenue to rise 6% compounded annually through 2029. Morningstar thinks Danaher stock is worth $270, and shares trade well below that.
Read Morningstar’s full report on Danaher.
For more stock ideas, be sure to tune in to The Morning Filter each week wherever you get your podcasts, and visit morningstar.com, too.
Morningstar director Sean Dunlop, senior analyst Julie Utterback, and analyst Malik Ahmed Khan provided the research behind this segment.
Watch 3 Overvalued Stocks to Sell 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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