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Chances Are These Stocks Are Undervalued

There's little question that these names are a buy.

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Investing in stocks entails risk. As a visitor to Morningstar.com, you probably already understand this. But not all risks are created equal. There are unhealthy risks--say, investing all of your 401(k) assets in the stock of one company--and healthy risks, such as investing in a broadly diversified portfolio of stocks and bonds designed to match your needs.

For stock investors, Morningstar tries to provide some risk guidance to go along with its fair value estimates for stocks by including a fair value uncertainty rating. Fair value estimates are a useful measure of what Morningstar analysts believe a stock is intrinsically worth, even if the market doesn't (or doesn't yet) agree. But along with that estimate comes a measure of the analyst's level of confidence in the estimate.

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Adam Zoll does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.