Amazon, Boeing and Meta make Morningstar list of undervalued stocks

With the S&P 500 down 20% year-to-date, many stocks are now arguably undervalued.

Morningstar has compiled a list of the 10 most undervalued stocks that have earned the company a wide moat.

The company determines whether a stock is undervalued based on its analysts’ fair value estimates. A wide moat means companies have “significant advantages that allow them to successfully out-maneuver competitors for decades,” according to Morningstar.

As for the list, it includes:

1. Mineral Compasses (CPM) – Get report from Compass Minerals Intl Inca salt and fertilizer producer: 59% undervalued.

2. Metaplatforms (META) – Get the report from Meta Platforms Inc.the titan of social networks: 58% undervalued.

3. MercadoLibre (MELI) – Get the MercadoLibre Inc. report.a Latin American online marketplace: 58% undervalued.

4. Teradyne (TER) – Get the report from Teradyne Inc.a manufacturer of test equipment: 48% undervalued.

5. Equifax (EFX) – Get the report from Equifax Inc.the credit bureau: 45% undervalued.

6.Boeing (BA) – Get Boeing company reportthe jet maker: 44% undervalued.

7. Sales Force (RCMP) – Get the Salesforce Inc. report.the business software publisher: 44% undervalued.

8. (AMZN) – Get the report from Inc. the retail/technology giant: 44% undervalued.

9.Intel (INTC) – Get Intel Corporation reportthe semiconductor company: 42% undervalued.

10. Polaris (IIP) – Get the Polaris Inc. report.outdoor vehicle manufacturer: 41% undervalued.

Morningstar’s take on Compass Minerals

Scroll to continue

The company “holds an enviable portfolio of cost-effective assets,” Morningstar analyst Seth Goldstein wrote in a commentary.

“Its rock salt mine in Goderich, Ontario benefits from unique geology and, with access to a deep-water port, it can deliver de-icing salt to its customers at a lower cost than its competitors” , did he declare.

“In addition, the company controls one of only three natural brine sources that produce the special sulfate of potash fertilizer.”

Morningstar’s take on meta-platforms

The company is “the largest social network in the world, with more than 3.6 billion monthly active users on its apps,” Morningstar analyst Ali Mogharabi wrote in a commentary.

“Growth in user numbers and user engagement, and the valuable data they generate, make Meta’s platforms attractive to advertisers.”

Additionally, “the combination of these valuable assets and our expectation that advertisers will continue to shift their spending online bodes well for revenue growth and cash flow for the business.”

Morningstar’s take on MercadoLibre

The company “continues to position itself as a one-stop e-commerce solution for Latin American buyers and sellers,” Morningstar analyst Sean Dunlop wrote in a commentary.

“The company has quietly developed a comprehensive ecosystem of mutually reinforcing services, with its core market supported by:

· “An arm of payments and loans (Mercado Pago),

A state-of-the-art shipping solution (Mercado Envios),

A robust advertising platform (Mercado Clics), and

· A volume-generating classifieds activity.

The author of this story owns shares of Meta Platforms, Salesforce, Amazon and Intel.

Comments are closed.