10 Value Stocks for Long-Term Investors: Morningstar

Are growth stocks overpriced? That was the question posed by Margaret Giles, a Morningstar content development editor, in a new blog post.

Growth stocks have enjoyed a sizable performance advantage over value stocks in 2023. The Morningstar US Growth Index outperformed the Morningstar US Value Index by some 25 percentage points through Dec. 8.

Meanwhile, value stocks look attractive, Morningstar’s chief U.S. market strategist, Dave Sekera, said in the post.

“Based on our valuations, we continue to advocate for an overweight position in the value category, whereas growth stocks are trading at a slight premium to our fair values and core stocks are valued near the market average,” Sekera said.

In her post, Giles listed the best value stocks to buy for the long term. Analysts chose these stocks from the value portion of the Morningstar style box. They are also from companies that Morningstar includes on its list of the best companies to own. These have wide Morningstar economic moat ratings and predictable cash flows, and they are run by management teams that make smart capital-allocation decisions.

Not least important, the stocks are trading below Morningstar’s fair value estimates.

See the accompanying gallery for 10 value stocks to buy for the long term, according to Morningstar. Year-to-date returns are as of midday Dec. 14.