Value stocks aren’t typically the most exciting investments, but they can often provide steady capital gains without causing investors to lose any sleep during periods of market volatility. Value stocks are typically mature companies with stable revenues and attractive share prices based on fundamental metrics, such as price-to-earnings, price-to-sales and price-to-book ratios.
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The best value stocks have an attractive fundamental valuation, a healthy balance sheet, a stable or growing market share in a sizable industry and a long track record of profitability. Here are 10 of Morningstar analysts’ top value stocks to buy now:
| Stock | Upside Potential* |
| Alphabet Inc. (ticker: GOOG, GOOGL) | 43.5% |
| Exxon Mobil Corp. (XOM) | 14.1% |
| UnitedHealth Group Inc. (UNH) | 13.8% |
| Merck & Co. Inc. (MRK) | 36.1% |
| PepsiCo Inc. (PEP) | 17.1% |
| Thermo-Fisher Scientific Inc. (TMO) | 22.6% |
| Verizon Communications Inc. (VZ) | 19.9% |
| Walt Disney Co. (DIS) | 24.0% |
| Caterpillar Inc. (CAT) | 24.5% |
| Danaher Corp. (DHR) | 35.4% |
*As of March 26 close.
Alphabet is one of the world’s largest online search and advertising companies and is the parent company of Google and YouTube. Not only is Alphabet an attractive value stock, it is also putting up impressive growth numbers. The stock trades at a modest 18.5 forward earnings multiple, but Alphabet also reported 14% revenue growth and 30% Google Cloud revenue growth in the most recent quarter. Analyst Malik Ahmed Khan is bullish on Alphabet’s diversified technology business, which includes search, artificial intelligence, video streaming and cloud computing. Morningstar has a “buy” rating and $237 fair value estimate for GOOGL stock, which closed at $165.06 on March 26.
Exxon Mobil Corp. (XOM)
Exxon Mobil is the largest U.S. oil major. Analyst Allen Good says Exxon’s heavy investments in developing its portfolio position the company to deliver $20 billion in earnings growth by 2030. Good says Exxon’s top-tier assets, including its Guyana and Permian Basin properties, will provide capital-efficient volume and earnings growth. In addition, he says the company’s downstream businesses provide low-carbon opportunities. Good says Exxon has a healthy balance sheet and can fund its dividend and invest in production growth while maintaining capital discipline. Morningstar has a “buy” rating and $135 fair value estimate for XOM stock, which closed at $118.27 on March 26.
UnitedHealth Group Inc. (UNH)
UnitedHealth is the largest U.S. managed health care firm, providing health plans and health care services to a wide range of customers. Analyst Julie Utterback says UnitedHealth has the most impressive profit margins in the managed care industry. The company’s leading pharmacy benefit management business faces regulatory risks, but Utterback says UnitedHealth is positioned to generate at least $450 billion in revenue and $32 billion in operating cash flow in 2025. She says UnitedHealth consistently stays at the cutting edge of the health care industry. Morningstar has a “buy” rating and $590 fair value estimate for UNH stock, which closed at $518.20 on March 26.
Merck & Co. Inc. (MRK)
Merck is one of the world’s largest pharmaceutical companies, and its leading products include cancer drug Keytruda and HPV vaccine Gardasil. Analyst Karen Andersen says Merck has an impressive portfolio of high-margin commercial drugs and an equally impressive pipeline of drug candidates in development that should help the company maintain strong returns on invested capital for long-term investors. Anderson says a high percentage of Merck’s commercial drugs have patent protection, and Keytruda remains a key blockbuster drug with multibillion-dollar potential from additional combinations and indications. Morningstar has a “buy” rating and $120 fair value estimate for MRK stock, which closed at $88.11 on March 26.
PepsiCo Inc. (PEP)
PepsiCo is a global beverage and snack company and owner of Frito-Lay and Quaker. Analyst Dan Su says PepsiCo will benefit from secular tailwinds in the snack industry, along with growth opportunities in Latin America, Africa and other emerging markets. Su says PepsiCo has valuable beverage and snack brands and significant scale advantages over smaller competitors, including distribution and pricing advantages. Furthermore, he says snack and beverage demand has historically remained resilient even during economic downturns, potentially making the stock an excellent defensive investment. Morningstar has a “buy” rating and $174 fair value estimate for PEP stock, which closed at $148.64 on March 26.
[Read: 2025’s 10 Best-Performing Stocks]
Thermo-Fisher Scientific Inc. (TMO)
Thermo-Fisher Scientific produces analytical instruments and provides laboratory services for life sciences, pharmaceutical and industrial applications. Analyst Alex Morozov says regulatory uncertainty and muted growth have weighed on Thermo-Fisher’s stock price, creating an attractive entry point. Morozov says rebounding China demand and biopharmacy channel growth will support Thermo-Fisher’s sales numbers in 2025. He says the company’s unparalleled resources, manufacturing capabilities and product portfolio have helped it steadily gain customer wallet share across all its channels. Morozov says emerging markets will be key growth drivers as well. Morningstar has a “buy” rating and $630 fair value estimate for TMO stock, which closed at $513.67 on March 26.
Verizon Communications Inc. (VZ)
Verizon Communications is the largest U.S. wireless carrier. Analyst Michael Hodel says the U.S. telecommunications market is intensely competitive, but Verizon has delivered slow, steady service revenue growth while keeping a lid on costs. Even though it is gradually losing market share to AT&T Inc. (T) and T-Mobile US Inc. (TMUS), Hodel says Verizon has the most attractive valuation of the big three U.S. wireless providers. Morningstar has a “buy” rating and $53 fair value estimate for VZ stock, which closed at $44.18 on March 26.
Walt Disney Co. (DIS)
Walt Disney is one of the largest and most diversified media and entertainment companies in the world. Analyst Matthew Dolgin says Disney’s success with its streaming services, including Disney+, Hulu and ESPN+, have helped mitigate the struggles of its declining linear networks business. In the most recent quarter, Disney reported 1.6 million new Hulu subscribers but lost 700,000 Disney+ subscribers and 700,000 ESPN+ subscribers. Dolgin says Disney doesn’t need to report significant subscriber growth, but it must not lose streaming subscribers over time. Morningstar has a “buy” rating and $125 fair value estimate for DIS stock, which closed at $100.78 on March 26.
Caterpillar Inc. (CAT)
Caterpillar is one of the world’s largest producers of construction and mining equipment. Analyst George Maglares says Caterpillar structurally improved its margins in 2024 despite a difficult construction market. Maglares says those headwinds may persist in 2025, but it is well positioned to outperform when the U.S. construction market and the global mining market eventually rebound. He says Caterpillar has always been a cyclical stock that has rewarded patient investors, but management has worked to reduce earnings volatility and improve profitability in recent years. Morningstar has a “buy” rating and $425 fair value estimate for CAT stock, which closed at $341.11 on March 26.
Danaher Corp. (DHR)
Danaher provides professional, medical, industrial and commercial products. Utterback says Danaher’s investment strategy and execution have been exceptional, and its differentiated technology is protected by trademarks and patents. The essential nature of many of the company’s tools also make it difficult and costly for clients to switch to competitors, helping to insulate Danaher’s business. Utterback says Danaher has expanded into attractive end markets that have strong growth prospects and sticky, recurring revenue opportunities. She is particularly bullish on the life science business’s high margins. Morningstar has a “buy” rating and $285 fair value estimate for DHR stock, which closed at $210.41 on March 26.
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10 Best Value Stocks to Buy Now originally appeared on usnews.com
Update 03/27/25: This story was previously published at an earlier date and has been updated with new information.
