10 Best Stocks to Buy Now - January 2026 from MorningStar (31Dec2025)

This article is released by MorningStar on 31Dec2025. This is not financial advice. Please do our due diligence.

10 Best Stocks to Buy Now—January 2026

The 10 most undervalued stocks from our Best Companies to Own list as of Dec. 30, 2025, were:

1. Campbell’s CPB

2. Coloplast CLPBY

3. Clorox CLX

4. Yum China YUMC

5. Constellation Brands STZ

6. Zimmer Biomet ZBH

7. Tyler Technologies TYL

8. Ambev ABEV

9. Diageo DEO

10. Dassault Systèmes DASTY

Here’s a little bit about why we like each of these companies at these prices, along with some key Morningstar metrics. All data is as of market close on Dec. 30.

Here are 3 of the write-ups from the same Morningstar article. Personally, I do understand the criteria used and I may avoid some these companies.

Campbell’s

• Price/Fair Value: 0.47

• Morningstar Uncertainty Rating: Medium

• Morningstar Capital Allocation Rating: Standard

• Industry: Packaged Foods

Campbell’s returns as the most undervalued stock on our list of best companies to buy this month. The company earns a Morningstar Economic Moat Rating of wide thanks to its cost advantages and brands, which include its namesake brand, Pace, Prego, and Swanson, among others. Campbell’s strategy is sound, observes Morningstar director Erin Lash, who expects to see more gains from the company in the future. By leveraging technology, data insights, and artificial intelligence, the company brings products that consumers value to the shelf in a timely fashion. Campbell recently laid out plans to unlock $375 million in savings through fiscal 2028, on top of the $950 million it realized over the past few years. Campbell stock is trading 53% below our $60 fair value estimate.

Coloplast

• Price/Fair Value: 0.57

• Morningstar Uncertainty Rating: Medium

• Morningstar Capital Allocation Rating: Exemplary

• Industry: Medical Instruments and Supplies

Coloplast looks 43% undervalued relative to our fair value estimate of $14.90 per share. Based in Denmark, Coloplast is a leader in global ostomy and continence care. The firm has a long record of consistent and meaningful innovation that has led to a dominant position in Europe and growth in the US, says Morningstar senior analyst Debbie Wang. Since 2008, the firm has trimmed its cost structure as it has focused on profitable growth. Currently, Coloplast is focused on entering new geographies to enhance growth, with an emphasis on the United States.

Clorox

• Price/Fair Value: 0.62

• Morningstar Uncertainty Rating: Medium

• Morningstar Capital Allocation Rating: Exemplary

• Industry: Household and Personal Products

Clorox operates in a variety of consumer products categories, from cleaning supplies to laundry care to natural personal care products. More than 80% of the company’s sales come from the US. Clorox has been able to navigate intense competition and lower consumer spending by focusing on consumer-centric innovation while bolstering its e-commerce capabilities and marketing efforts. “Clorox remains resolute in investing to support the long-term health of the business and ensure its competitive edge remains intact,” says Morningstar’s Lash. Shares of Clorox stock are 38% undervalued compared with our fair value estimate of $163 per share.

@TigerStars

$Campbell Soup(CPB)$

$Yum China Holdings, Inc.(YUMC)$

$Clorox(CLX)$