3 Top Value Stocks to Buy and Hold for 2025
These high-quality companies are solid—and their stocks look cheap.
Susan Dziubinski: I’m Susan Dziubinski with Morningstar. Value stocks look undervalued relative to growth stocks today, according to Morningstar’s metrics. And many would argue that after lagging growth stocks during the past few years, value stocks are due for an extended run.
So today, we’re sharing three value stocks to buy and hold in 2025. These names were taken from Morningstar’s Best Companies to Own list. Our Best Companies to Own list includes companies with significant competitive advantages—or what we call wide economic moats. These companies also have predictable cash flows and are well positioned to confront economic uncertainty. The stocks we’re focusing on today from that list are undervalued and land on the value side of the Morningstar Style Box.
3 Top Value Stocks to Buy and Hold for 2025
The first stock on our list of three top value stocks to buy and hold for 2025 is Campbell. Although the company is perhaps best known for its namesake brand, its portfolio also includes other well-known brands including Prego, Swanson, V8, and Pepperidge Farm. And although inflation and weak consumer spending have taken a toll on recent results, we think the company will remain competitive thanks to its ability to leverage technology, data, and artificial intelligence to innovate and reduce costs at the same time. We think the stock is worth $63 per share.
Review Morningstar’s full report about Campbell.
The next stock on our list of top value stocks to buy and hold is Danaher DHR. Not long ago, Morningstar raised its economic moat rating on this medtech company to wide from narrow thanks to the company’s durable switching costs. Management’s adept acquisitions have led Danaher into attractive end markets with strong growth prospects and sticky, recurring revenue streams. While the company is facing short-term headwinds, including pricing pressures in China and a mild respiratory season, we expect growth trends to return to more normalized levels longer term. We think Danaher stock is worth $270.
Review Morningstar’s full report about Danaher.
Our last value stock to buy and hold in 2025 is UPS. UPS is the world’s largest delivery company. The stock slipped on news that Amazon AMZN would be ramping down the package volumes it sends by UPS by 50% during the next 18 months. We lowered our fair value estimate on the stock as a result, but we still think that UPS’ shares look attractive. We think there’s a longer-term upside opportunity here if business-to-business package activity recovers and UPS can rationalize network capacity in light of the Amazon-related volume declines. We think UPS stock is worth $138.
Review Morningstar’s full report on UPS.
For more stock ideas be sure to visit Morningstar.com.
Watch 3 Undervalued Stocks to Buy Before the Big Game This Weekend for more from Susan Dziubinski.
Morningstar director Erin Lash and senior analysts Julie Utterback and Matthew Young provided the research behind this segment.
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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