The 10 Best Companies to Invest in Now

The US market is looking expensive, 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. 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 10 best companies with the most undervalued stock prices today.

10 Best Stocks to Buy Now—October 2025

The 10 most undervalued stocks from our Best Companies to Own list as of Sept. 29, 2025, were:

1. Campbell’s CPB
2. Yum China Holdings YUMC
3. Coloplast CLPBY
4. Constellation Brands STZ
5. Kenvue KVUE
6. Bristol-Myers Squibb BMY
7. Ambev ABEV
8. Brown-Forman BF.B
9. Danaher DHR
10. GSK GSK

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 Sep. 29.

Campbell’s

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

Campbell’s returns as 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’s 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 over the past few years. Campbell stock is trading 50% below our $62 fair value estimate.

Yum China Holdings

• Price/Fair Value: 0.57
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Restaurants

Yum China’s stock is trading at a 43% 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.

Coloplast

• Price/Fair Value: 0.58
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Medical Instruments and Supplies

The first of four healthcare companies on our list of best stocks to buy, Coloplast looks 42% undervalued relative to our fair value estimate of $14.90 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 trimmed 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.

Constellation Brands

• Price/Fair Value: 0.61
• 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. Morningstar analyst Dan Su acknowledges some near-term demand challenges as consumers tighten their belts, but Constellation Brands will continue to benefit from consumer loyalty and a solid innovation pipeline. Constellation Brands’ stock trades at a 39% discount to our fair value estimate of $225 per share.

Kenvue

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

Consumer health company Kenvue is new to our list of best companies to buy this month. Formerly known as Johnson & Johnson’s JNJ consumer segment, the firm spun off and went public in 2023. Kenvue’s portfolio includes Tylenol, Listerine, Johnson’s, Aveeno, and Neutrogena. Kenvue’s share price dropped following a statement from the US Department of Health and Human Services on the potential link between acetaminophen use during pregnancy and autism, but Morningstar analyst Keonhee Kim doesn’t predict significant demand headwinds to Tylenol on a global level as the release lacked evidence of a causal link. However, more plaintiffs could emerge for ongoing Tylenol lawsuits. Kenvue still has a strong portfolio and has been able to stay ahead of its markets in terms of price hikes, and we expect this trend to continue thanks to its products’ brand power. Kenvue shares are trading 33% below our fair value estimate of $24.50.

Bristol-Myers Squibb

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

Next on our list of best stocks to buy is pharmaceutical company Bristol-Myers Squibb. Adept at partnerships and acquisitions, Bristol has built a strong portfolio of drugs and a robust pipeline. The firm has brought in partners to share the development costs and diversify the risks of clinical and regulatory failure, says Morningstar director Karen Andersen. Bristol is aggressively repositioning itself to expand through challenging patent losses. The 2019 Celgene acquisition moved Bristol deeper into blood-related disease, which tends to be an area with strong drug pricing power and should help Bristol in a time when both governments and private payers are pushing back on drug prices. Bristol-Myers Squibb stock is trading 33% below our fair value estimate of $66 per share.

Ambev

• Price/Fair Value: 0.67
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Beverages—Brewers

Ambev, a subsidiary of Anheuser-Busch InBev BUD, is the largest brewer in Latin America and the Caribbean. It produces, distributes, and sells beer and PepsiCo PEP products in Brazil and other Latin American countries and owns Argentina’s largest brewer, Quinsa. Ambev essentially has a monopoly over the beer markets in multiple regions, which gives it cost and pricing power. Further, we think Ambev is well-positioned to capture top-line growth. “Per capita beer consumption across many Latin American countries is relatively lower than in developed countries, paving an attractive runway for volume growth,” says Morningstar analyst Verushka Shetty. We expect the firm can maintain its market share through economic cycles thanks to its cost advantage and broad portfolio. However, we are cautious of potential price competition from large-cap peers entering the attractive Latin American market. Ambev stock trades 33% below our fair value estimate of $3.40 per share.

Brown-Forman

• Price/Fair Value: 0.68
• 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. The ongoing trade spats between the US and key trading partners such as Canada may also stall Brown-Forman’s pace of overseas expansion. Shares of Brown-Forman stock are trading 32% below our fair value estimate of $40.

Danaher

• Price/Fair Value: 0.69
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Diagnostics and Research

Medical technology company Danaher rejoins our list of best companies to buy. The firm offers differentiated technology that is protected by various intangible assets, including patents, brands, copyrights, and trademarks, observes Morningstar senior analyst Julie Utterback. Danaher seeks out attractive markets and makes acquisitions to enter or expand within those fields, and it also divests assets that are no longer core to the business. The company’s acquisition-focused strategy has contributed to it becoming a top-five player in the highly fragmented and relatively sticky life science and diagnostic tool markets. Danaher stock trades at a 31% discount to our fair value estimate of $270 per share.

GSK

• Price/Fair Value: 0.71
• Morningstar Uncertainty Rating: Medium
• Morningstar Capital Allocation Rating: Standard
• Industry: Drug Manufacturers—General

Drug manufacturer GSK rounds out our list of best companies to buy. 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 29% below our fair value estimate of $58 per share.

Find More of the Best Stocks to Invest In Now

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.