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Stock Strategist

Stocks Santa Forgot

These elf-sized stocks could be a great post-holiday gift for your portfolio.

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Stocks may not be the most traditional holiday gift in the world, but we have a strong suspicion that many (especially friends and family of Morningstar.com readers) found that Santa left a certificate in their stockings this morning. Chances are the gift was from a big, well known blue-chip firm like  General Electric (GE),  IBM (IBM),  Apple  (AAPL), or  McDonald's (MCD).

And these firms may very well be good investments, but Santa, and many other investors, may have overlooked some smaller companies that represent great values right now. Many of these cheap, small firms also have been able to carve out economic moats. This means that despite their lack of scale, these businesses have found profitable niches that they can defend from competitors large and small.

Jeremy Glaser does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.