Hello, I’m Susan Ziubinski, co-host of **Morning Filter** Podcast. Recently, Dave Sekera, who serves as Morningstar’s chief U.S. market strategist, shared some stock recommendations that, despite having seen gains lately, are still significantly undervalued compared to our fair value assessments. Among his picks were Clorox, Mondelez International, and Constellation Brands.
Today, we’re going to explore a few more stocks that have outperformed the market recently but still appear to be quite cheap based on our evaluations. Morningstar analysts think these might be good buys at current prices.
3 More Stocks to Invest In Before They’re No Longer a Bargain
- Diageo
- Yum China
- Comcast
First up is Diageo. As the largest distiller by sales globally, Diageo has a broad economic moat thanks to its impressive brand lineup, which includes Guinness, Captain Morgan, and Crown Royal. While there’s been a dip in alcohol consumption affecting sales, we believe this is a temporary setback. With a new CEO at the helm, we expect changes that could bolster the company’s portfolio and push for cost reductions. Remarkably, Diageo’s stock still seems undervalued despite its strong performance this year.
Next, we have Yum China, the largest restaurant operator in China. The company boasts a robust economic moat around its well-known brands, including KFC, Taco Bell, and Pizza Hut. Their recent results show impressive same-store sales growth and expanding margins, positioning Yum China favorably for benefiting from a rebound in the restaurant sector in China. Even though the stock has outperformed this year, it still seems undervalued compared to our fair value estimate of $76.
Finally, let’s talk about Comcast. You might associate Comcast primarily with cable services, but its portfolio also includes Sky, NBC, Universal, and even theme parks. That said, Morningstar assigns it a narrow economic moat mainly due to its cable business. Comcast is anticipated to maintain its place as the leading broadband provider in the U.S. Interestingly, despite its recent lackluster performance, the market seems to have underestimated its potential, given the rising share price this year. Even after this upside, we still see Comcast’s stock as undervalued against our fair value estimate of $41.
For further insights, it’s worth checking Morningstar’s detailed reports. And remember, if you’re looking for more stock ideas, **Morning Filter** has the latest discussions each week—accessible wherever you get your podcasts.
