The US market is starting to look expensive again, so investors may be wondering which stocks to buy now against this backdrop.

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. 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 10 best companies to invest in with the most undervalued stock prices today.

10 Best Stocks to Buy Now—July 2025

The 10 most undervalued stocks from our best companies to wn list as of June 27, 2025, were:

  1. Campbell CPB
  2. Pfizer PFE
  3. Yum China Holdings YUMC
  4. Brown-Forman BF.B
  5. Nike NKE
  6. Thermo Fisher Scientific TMO
  7. Constellation Brands STZ
  8. GSK GSK
  9. Coloplast CLPBY
  10. Clorox CLX

Here’s a little bit about why we like each of these companies at these prices, along with some key Morningstar metrics. All data is as of market close on June 27.

Campbell

  • Price/Fair Value: 0.50
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Standard
  • Industry: Packaged Foods

Campbell is the most undervalued stock on our list of best companies to buy this month. The company earns a wide moat rating thanks to its cost advantages and brands, which include its namesake brand, Pace, Prego, and Swanson, among others. We think Campbell’s strategy is sound, observes Morningstar director Erin Lash. By leveraging technology, data insights, and artificial intelligence, the company brings products that consumers value to the shelf in a timely fashion. “We believe Campbell remains committed to extracting inefficiencies from its supply chain and distribution network, optimizing direct-to-store routes, and investing in automation,” she adds. Campbell recently laid out plans to unlock $250 million in savings through fiscal 2028, on top of the $950 million it realized the past few years. Campbell stock is trading 50% below our $62 fair value estimate.

Pfizer

  • Price/Fair Value: 0.58
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Standard
  • Industry: Drug Manufacturers—General

Pfizer is the first of four healthcare companies to make our list of best stocks to buy now. A household name among drug manufacturers, Pfizer stock is currently trading at a 42% discount to its fair value estimate of $42 per share. The company’s large size gives it significant competitive advantages in developing new drugs, and its diverse portfolio of drugs helps insulate the company from any one particular patent loss, says Morningstar director Karen Andersen. After many years of struggling to bring out important new drugs, Pfizer is now launching several potential blockbusters in cancer and immunology. With limited patent losses and fewer older drugs, Pfizer is poised for steady growth (excluding the more volatile coronavirus-related product sales) before a round of major patent losses hits in 2028.

Yum China Holdings

  • Price/Fair Value: 0.59
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Standard
  • Industry: Restaurants

Yum China stock is trading at a 41% discount to our fair value estimate of $76 per share. The restaurant sector in China continues to face challenges because of the real estate downturn and a lack of significant economic stimulus, but Morningstar senior analyst Ivan Su believes Yum China has opportunities for restaurant expansion in China’s fast-food industry. Over the longer term, we believe there are several opportunities for Yum China to gain a share in the fragmented $700 billion Chinese restaurant market. Our conviction in rising fast-food penetration is underpinned by three long-term secular trends: the increasing number of office workers, rising disposable incomes, and shrinking family sizes.

Brown-Forman

  • Price/Fair Value: 0.63
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Exemplary
  • Industry: Beverages—Wineries and Distilleries

Premium spirits maker Brown-Forman has over 150 years of distilling experience, specializing in Tennessee whiskey and Kentucky bourbon. Morningstar analyst Dan Su observes that Brown-Forman has earned accolades and loyalty from drinkers for distinct flavors and consistent quality, building strong brand equity for its core Jack Daniel’s trademark in the US and globally. Further, the company’s high-end positioning in the whiskey category aligns well with the industry’s premiumization trend. Still, the company must deal with some regulatory headwinds affecting the industry, as well as the proliferation of craft distillers that could chip away at Brown-Forman’s customer base. Shares of Brown-Forman stock are trading 37% below our fair value estimate of $42.

Nike

  • Price/Fair Value: 0.64
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Exemplary
  • Industry: Footwear and Accessories

Next on our list of best companies to buy now, Nike stock is trading 36% below our fair value estimate of $112 per share. The largest athletic footwear brand in all major categories and all major markets, Nike dominates categories like running and basketball with popular shoe styles. We view Nike as the leader of the athletic apparel market and believe it will overcome current challenges, such as uneven demand for sportswear in key markets and high tariff exposure, argues Morningstar senior analyst David Swartz. Nike has a renewed focus on its key partners, its products, and its connections to international athletics under new CEO Elliott Hill. Hill is investing in new marketing and products while rebuilding Nike’s relationships with retailers and the global sports community.

Thermo Fisher Scientific

  • Price/Fair Value: 0.65
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Exemplary
  • Industry: Diagnostics and Research

Thermo Fisher Scientific is weathering the pullback in global biopharmaceutical spending better than most of its peers. Being the premier life science supplier and having an unmatched portfolio of products, resources, and manufacturing capabilities have allowed Thermo Fisher to retain and grow its wallet share among its customers across all channels, observes Morningstar regional director Alex Morozov. The firm remains in a great position to leverage its share gains in the biopharma channel and capitalize on strong long-term demand. Thermo Fisher stock is trading at a 35% discount to its fair value estimate of $630.

Constellation Brands

  • Price/Fair Value: 0.65
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Standard
  • Industry: Beverages—Brewers

Constellation Brands is the largest provider of alcoholic beverages across the beer, wine, and spirits categories in the United States, generating 80% of revenue from Mexican beer imports under top-selling brands such as Modelo and Corona. While overall beer volume in the US has been stagnant, Constellation has capitalized on premiumization tailwinds to drive high-single-digit volume growth in past years before slowing to 3% in 2025 due to macroeconomic factors. While Morningstar analyst Dan Su anticipates near-term demand challenges, she expects the Constellation’s long-term beer volume growth to remain strong in the coming years, backed by consumer loyalty and a solid innovation pipeline. Constellation Brands stock trades at a 35% discount to our fair value estimate of $247 per share.

GSK

  • Price/Fair Value: 0.67
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Standard
  • Industry: Drug Manufacturers—General

Next on our list of best stocks to buy now is pharmaceutical company GSK. The firm’s innovative new product lineup and expansive list of patent-protected drugs create a wide economic moat, says Morningstar senior analyst Jay Lee, as GSK’s diverse drug portfolio insulates the company from problems with any one product. The strong product pipeline at GSK stems from a shift in strategy; the firm had previously targeted slight enhancements but now focuses on true innovation. GSK is also strategically branching out from developed markets into emerging markets. We expect GSK to be a major competitor in respiratory, HIV, and vaccines over the next decade. GSK stock trades 33% below our fair value estimate of $58 per share.

Coloplast

  • Price/Fair Value: 0.67
  • Morningstar Uncertainty Rating: Medium
  • Morningstar Capital Allocation Rating: Exemplary
  • Industry: Medical Instruments and Supplies

Coloplast stock looks 32% undervalued relative to our fair value estimate of $14.10 per share. Based in Denmark, Coloplast is a leader in global ostomy and continence care. The firm has a long record of consistent and meaningful innovation that has led to a dominant position in Europe and growth in the US, says Morningstar senior analyst Debbie Wang. Since 2008, the firm has done an admirable job of trimming its cost structure as it focused on profitable growth. Currently, Coloplast is focused on entering new geographies to enhance growth, with an emphasis on the United States.

Clorox

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

Clorox joins our list of best companies to buy now and rounds out the group. The firm operates in a variety of consumer products categories, from cleaning supplies, to laundry care, to natural personal care products. More than 80% of the company’s sales come from the US. Clorox has been able to navigate intense competition and lower consumer spending by focusing on consumer-centric innovation while bolstering its e-commerce capabilities and marketing efforts. “Clorox remains resolute in investing to support the long-term health of the business and ensure its competitive edge holds,” says Morningstar director Erin Lash. Shares of Clorox stock are 33% undervalued compared with our fair value estimate of $177.

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Terms used in this article

Star Rating: Our one- to five-star ratings are guideposts to a broad audience and individuals must consider their own specific investment goals, risk tolerance, and several other factors. A five-star rating means our analysts think the current market price likely represents an excessively pessimistic outlook and that beyond fair risk-adjusted returns are likely over a long timeframe. A one-star rating means our analysts think the market is pricing in an excessively optimistic outlook, limiting upside potential and leaving the investor exposed to capital loss.

Fair Value: Morningstar’s Fair Value estimate results from a detailed projection of a company’s future cash flows, resulting from our analysts’ independent primary research. Price To Fair Value measures the current market price against estimated Fair Value. If a company’s stock trades at $100 and our analysts believe it is worth $200, the price to fair value ratio would be 0.5. A Price to Fair Value over 1 suggests the share is overvalued.

Moat Rating: An economic moat is a structural feature that allows a firm to sustain excess profits over a long period. Companies with a narrow moat are those we believe are more likely than not to sustain excess returns for at least a decade. For wide-moat companies, we have high confidence that excess returns will persist for 10 years and are likely to persist at least 20 years. To learn about finding different sources of moat, read this article by Mark LaMonica.