10 Best Stocks to Buy Now in 2025 – Undervalued Picks with Strong Fundamentals
With the US stock market appearing overvalued, investors are asking: What are the best stocks to buy right now? In uncertain market conditions, it’s crucial to invest in companies with strong fundamentals, predictable cash flows, and a history of solid capital allocation.
That’s where Morningstar’s Best Companies to Own list becomes a valuable resource. These companies enjoy significant competitive advantages (or “moats”) and are known for consistent performance. However, not all great companies are great investments unless bought at the right price.
To help you make informed decisions, we’ve compiled a list of the top 10 most undervalued stocks to buy in June 2025, based on Morningstar’s fair value estimates.
Top Undervalued Stocks to Invest In – June 2025
Nike (NKE)
- Price/Fair Value Ratio: 0.55 (45% undervalued)
- Industry: Footwear & Accessories
- Capital Allocation: Exemplary
Nike remains the most undervalued stock on this list. As a global leader in athletic apparel and footwear, Nike is trading far below its fair value of $112 per share. Despite current challenges like supply chain disruptions and tariff pressures, Nike’s renewed focus on innovation and retail partnerships under new CEO Elliott Hill is a strong sign for long-term investors.
Pfizer (PFE)
- Price/Fair Value Ratio: 0.56
- Industry: Pharmaceuticals
- Capital Allocation: Standard
Trading at a 44% discount, Pfizer offers stability through its diverse drug portfolio. With fewer older drugs and a wave of promising launches in cancer and immunology, Pfizer is poised for steady growth through 2028.
Campbell Soup (CPB)
- Price/Fair Value Ratio: 0.56
- Industry: Packaged Foods
- Capital Allocation: Standard
Campbell continues to strengthen its market position with top brands like Prego and Swanson. Leveraging AI, automation, and data insights, the company plans to cut costs by $250 million by 2028. Its shares currently trade at a 44% discount.
Thermo Fisher Scientific (TMO
- Price/Fair Value Ratio: 0.64
- Industry: Diagnostics & Research
- Capital Allocation: Exemplary
Despite reduced global biopharma spending, Thermo Fisher stands out with unmatched manufacturing capabilities and product diversity. It currently trades at a 36% discount, making it a strong healthcare investment.
Brown-Forman (BF.B)
- Price/Fair Value Ratio: 0.66
- Industry: Alcoholic Beverages
- Capital Allocation: Exemplary
Known for its premium spirits like Jack Daniel’s, Brown-Forman benefits from strong brand equity and industry premiumization. Shares are undervalued by 34%, despite challenges from increased competition and regulation.
Constellation Brands (STZ)
- Price/Fair Value Ratio: 0.66
- Industry: Alcoholic Beverages – Brewers
- Capital Allocation: Standard
With leading beer brands like Modelo and Corona, Constellation Brands has capitalized on the premium beverage trend. Trading 34% below its fair value of $274, it’s a solid pick for growth in consumer staples.
West Pharmaceutical Services (WST)
- Price/Fair Value Ratio: 0.68
- Industry: Medical Supplies
- Capital Allocation: Exemplary
A global leader in injectable packaging, West Pharmaceutical stands out for its regulatory excellence and strong supply chain. Its stock is undervalued by 32% and has promising long-term demand.
Coloplast (CLPBY)
- Price/Fair Value Ratio: 0.68
- Industry: Medical Devices
- Capital Allocation: Exemplary
Based in Denmark, Coloplast specializes in ostomy and continence care. The company shows steady innovation and is expanding into the US, with its shares currently 32% below fair value.
GSK (GSK)
- Price/Fair Value Ratio: 0.69
- Industry: Pharmaceuticals
- Capital Allocation: Standard
With a focus on innovation, GSK has built a diverse drug portfolio and is expanding into emerging markets. Its shares trade 31% below the fair value estimate of $58, offering good value for long-term investors.
Why These Stocks Stand Out
- Strong Competitive Moats
- Predictable Earnings
- Smart Capital Allocation
- Undervalued Entry Points
These stocks not only offer growth opportunities but also provide a safety net through strong financials and proven business models.
Related FAQs
What makes a stock “undervalued”?
An undervalued stock trades below its estimated intrinsic value (often measured by price-to-fair-value ratios), indicating potential for future growth and returns.
Are these stocks suitable for long-term investment?
Yes. These companies are chosen based on fundamental strength, sustainable cash flows, and long-term growth potential, making them ideal for long-term investors.
Is it safe to invest in undervalued stocks during market uncertainty?
While no investment is risk-free, undervalued stocks with strong fundamentals are generally considered safer during volatile market conditions, as they offer a margin of safety.
Where can I find more top-performing stocks to invest in?
Explore more on Morningstar’s:
- Best Dividend Stocks
- Best Growth Stocks
- Best Sustainable Stocks
- Best International Stocks
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Final Thoughts
As of June 2025, these 10 stocks offer an attractive mix of value, performance, and stability. For investors seeking guidance on which stocks to buy, this list offers a solid foundation for building a resilient and profitable portfolio.
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