Investors are encountering a U.S. market that looks expensive, and so may be wondering which stocks to buy now, Margaret Giles, a Morningstar senior editor of content development, writes in a recent blog post. They want to own companies that give them some sense of certainty about their cash flows and fundamentals.
Morningstar analysts scanned the firm’s list of best companies to own, focusing on 10 that are trading below fair value. Besides their attractive prices, these companies have significant competitive advantages, Giles writes.
They have predictable cash flows, and are managed by teams that have a history making smart capital-allocation decisions.
See the gallery for 10 good companies trading at a discount, according to Morningstar. Year-to-date performance is as of Monday morning.
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