How to find the best stocks to invest in now

There are many considerations when selecting new stocks for your portfolio: diversification, allocation, risk tolerance, and time horizon, to name a few. Morningstar can provide a reliable source for ideas backed by data and driven by more than 40 years of independent, disciplined analysis.

After signing in to Morningstar Investor, use this step-by-step guide to kick-start your stock research. Not a subscriber? Take Screener for a spin by starting a 7-day free trial and save $40 on your first year.

Step 1: Navigate to the SCREENER tool and refer to the left-hand toolbar

Step 2: Select STOCKS under SECURITY TYPE

Step 3: Select 5-, 4-, and 3-STARS under the MORNINGSTAR RATING FOR STOCKS

Why it matters: The higher the star rating the more undervalued the stock is relative to our analysts’ fair value estimates.

Step 4: Select WIDE and NARROW under ECONOMIC MOAT

Why it matters: A company with an economic moat can resist competitive pressure and compound investor returns more reliably over time.

Analyze the results: After applying these filters, you’ll surface a focused list of companies that combine attractive valuations with durable competitive advantages. Use this as a starting point to further evaluate fundamentals and ensure each idea aligns with your portfolio goals and risk tolerance. A disciplined screening process can help you uncover high-quality opportunities with stronger long-term return potential.