10 Best Value Stocks to Buy for the Long Term

In 2026, value stocks have experienced more consistent returns than growth stocks. The difference was particularly noticeable this spring when uncertainties around artificial intelligence’s impact on various industries rattled the markets.

Over the past 12 months, the Morningstar US Growth Index rose 17.52%, while the Morningstar US Value Index gained 20.89%.

How should investors be thinking about value stocks heading into the second half of the year?

According to Morningstar Chief US Market Strategist David Sekera: “At this point, by category, valuations are broadly balanced, and we think investors should move to an equal weighting across value, core, and growth.”

10 Best Value Stocks to Buy for the Long Term

The 10 most undervalued value stocks from Morningstar’s Best Companies to Own list, as of July 14, 2026, were:

1. Campbell’s CPB
2. Zoetis ZTS
3. Yum China Holdings YUMC
4. Clorox CLX
5. Tractor Supply TSCO
6. Sony Group SONY
7. Microsoft MSFT
8. Zimmer Biomet ZBH
9. GE HealthCare Technologies GEHC
10. Reckitt Benckiser Group RBGLY

To come up with our list of the best value stocks to buy for the long term, we screened for:

• Stocks that land in the value portion of the
  Morningstar Style Box
  .
• Stocks from companies included on Morningstar’s list of the Best Companies to Own. Companies on this list have wide
  Morningstar Economic Moat Ratings
  and predictable cash flows, and they are run by management teams that make smart capital-allocation decisions.
• Stocks that are undervalued, as measured by our price/fair value metric.

Here’s a little more about each of these value stocks for the long term, including commentary from the Morningstar analysts who cover each company. All data is as of July 14, 2026.

Campbell’s

• Morningstar Price/Fair Value
  : 0.39
• Morningstar Uncertainty Rating
  : Medium
• Morningstar Style Box
  : Small Value
• Morningstar Capital Allocation Rating
  : Standard
• Industry
  : Packaged Foods

Packaged-food company Campbell’s is the most affordable stock on our list of the best value stocks to buy. Over the past 150-plus years, Campbell’s has evolved into a leading domestic packaged-food manufacturer, with a portfolio that extends beyond its iconic red-and-white-labeled canned soup. The stock is trading 61% below our fair value estimate of $56 per share.

Over the past 10 years, Campbell’s has orchestrated significant changes. For one, the portfolio mix has shifted significantly: Its core soup lineup now accounts for just over 25% of total sales (down from more than 40% in fiscal 2017), while snacks account for just over 40% (up from less than 30%). In addition, the firm has worked to drive efficiencies across its supply chain and manufacturing network to boost spending behind its brands and capabilities, thereby solidifying its competitive edge. The byproduct of these efforts has been 1% average annual organic sales growth over the past five years alongside low-teens average adjusted operating margins.

We expect further gains from Campbell’s sound strategic focus—leveraging technology, data insights, and artificial intelligence to bring products to market that align with evolving consumer trends in a timely manner while managing cost pressures. To further these efforts, Campbell’s has also outlined plans to unlock $375 million in savings through fiscal 2028 (up from $250 million previously) and now also sees an extra $100 million in overhead reductions. This is in addition to the $950 million realized over the past few years, driven by optimization, technological enhancements, and reduced indirect spending. Importantly, we expect these efforts to fund investments in consumer-valued innovation and marketing. As such, we forecast 5% of sales will be directed to research, development, and marketing on average annually (approximately $550 million). From where we sit, this is key to helping ensure its brands keep pace with consumer preferences, underpinning the firm’s intangible-based moat.

We think Campbell’s still seeks inorganic growth opportunities. Most recently, Campbell’s acquired a 49% stake in La Regina, maker of Rao’s sauces. This follows the 2024 acquisition of Sovos Brands, which generates around $1 billion in annual sales. We see its exposure to the premium sauce aisle complementing its lower-priced Prego brand and benefiting from Campbell’s financial resources and entrenched retailer relationships. This addition should spur distribution gains as the integration progresses, juicing its sales prospects.

Read more about Campbell’s here.

Zoetis

• Morningstar Price/Fair Value: 0.53
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Value
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Drug Manufacturers—Specialty and Generic

Zoetis sells anti-infectives, vaccines, parasiticides, diagnostics, and other health products for animals. The firm has the largest market share in the industry and was previously Pfizer’s animal health unit. Zoetis stock is trading at a 47% discount to our fair value estimate of $140 per share.

Zoetis is the undisputed leader in the global animal health industry, and we believe it possesses the widest moat of all the competitors. Zoetis has set itself apart based on the impressive innovation that shows up across its product portfolio, including a number of drugs for specific pet ailments such as separation anxiety. The firm has also sought to expand its presence into virtually every type of animal-related health market, including aquaculture and pet diagnostics.

The animal health industry had long been largely ignored because these businesses were buried within larger human health companies, but no longer. It has many attractive characteristics, including cash-pay buyers, a fragmented customer base, relatively low development costs, and opportunities to introduce novel therapies. Because of the fragmented and cash-pay customer base, animal drugmakers hold significant pricing power. On the human health side, firms are traditionally at the mercy of payers. Government payers or large managed care firms with pharmacy benefit managers have more power to force generic utilization, squash price increases, and even, in extreme cases, extract sizable rebates from drug manufacturers. However, animal health products are purchased by a fragmented group of protein producers, veterinarians, and pet owners, allowing very little bargaining power over the highly concentrated animal health firms.

This industry also benefits from favorable growth tailwinds that should allow Zoetis to increase companion animal revenue at a high single-digit long-term growth rate. Zoetis has benefited from pet owners’ increasingly strong relationships with pets as members of the family, which drastically increases their willingness to pay for expensive treatments. However, heightened competition from Elanco and Merck has entered the picture, which we think can eat into Zoetis’ key parasiticide and dermatology franchises. This puts more pressure on the firm to develop and launch innovative therapies, which has been one of Zoetis’ strengths.

Read more about Zoetis here.

Yum China Holdings

• Morningstar Price/Fair Value: 0.56
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Value
• Morningstar Capital Allocation Rating: Standard
• Industry: Restaurants

Next on our list of the best value stocks to buy is Yum China Holdings. Yum China is the largest restaurant operator in China, with over 18,000 locations and $12 billion in systemwide sales as of 2025. It generates revenue primarily from its own restaurants and franchise fees. The stock is trading at a 44% discount to our fair value estimate of $77 per share.

The Chinese restaurant sector continues to face headwinds from the real estate downturn and a lack of economic stimulus, affecting consumer spending. In this environment, we recommend that investors focus on companies that possess the scale to be more aggressive on pricing, as value-oriented players typically perform better during economic downturns. A healthy balance sheet is also crucial.

Yum China is well-positioned to gain share in the fragmented Chinese restaurant market, where chain restaurants account for only about 20% of China’s restaurant spending, versus roughly 35% globally and 60% in the US, underscoring a long runway for consolidation that should disproportionately benefit Yum China.

Despite current economic headwinds, we remain confident in the long-term growth of the quick-service restaurant segment, driven by three secular trends: the increasing number of office-based workers, rising disposable incomes, and shrinking family sizes.

Looking ahead, we expect the company to meet its 2026-28 targets, including: mid- to high-single-digit system sales compound annual growth rates, double-digit CAGR in net new stores, double-digit growth in free cash flow per share, and returning 100% of free cash flow to shareholders.

We believe these goals are achievable by expanding into thousands of lower-tier towns that currently lack KFC and broadening Pizza Hut’s footprint in cities that have KFC but not Pizza Hut, aided by the more budget- and takeout-friendly Pizza Wow format. These goals are also achievable by accelerating franchise expansion, particularly in protected locations, to speed market entry.

Admittedly, some of Yum China’s nascent brands have underperformed, partly due to the macroeconomic slowdown. That said, we continue to view Lavazza as a high-quality brand with differentiated premium coffee positioning—an opportunity made more attractive by Starbucks’ recent challenges in China. With the group’s in-house supply chain lowering food costs, we expect future Lavazza growth to be profitable; the brand already achieved a 6% restaurant margin in the third quarter of 2025.

Read more about Yum China Holdings here.

Clorox

• Morningstar Price/Fair Value: 0.61
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Small Value
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Household and Personal Products

Since its inception more than 100 years ago, Clorox has expanded to operate in a variety of consumer product categories, including cleaning supplies, laundry care, trash bags, cat litter, charcoal, food dressings, water filtration products, and natural personal care products. The stock is trading at a 39% discount to our fair value estimate of $155 per share.

With its entrenched retail standing and unrelenting focus on investing in its leading brand mix, Clorox has withstood the onslaught of pressures from covid, supply chain angst, rampant inflation, and an August 2023 cybersecurity attack. More recently, it has acknowledged a step-up in industrywide promotional spending, particularly in litter, bags, and wraps. Still, we don’t believe this suggests an irrational competitive landscape or that the firm is pursuing a volume-over-value strategy. Instead, we surmise Clorox remains committed to investing for the long term, ensuring its competitive edge remains intact.

The pandemic buoyed e-commerce adoption, illuminating the need to invest to bolster Clorox’s digital capabilities. As a part of this, management earmarked more than $500 million to accelerate productivity improvements, which we’ve viewed as prudent. We’re encouraged that Clorox’s strategy remains anchored in bringing consumer-valued innovation to market and touting its fare to consumers, which strikes us as particularly critical against the current backdrop of tepid consumer spending and intense competition. Clorox goes to bat against lower-priced private-label fare in most categories, but we believe investments in innovation and marketing should help its products stand out on the shelf and deter trade down. This underpins our forecast that Clorox will allocate around 13% of sales annually—just over $1 billion—to research, development, and marketing.

Even with these investments, we believe Clorox is on a path to maintaining the mid-40s gross margin that historically characterized the business (up from its low 30s trough in the second quarter of fiscal 2022, when cost inflation ate into profits). Despite the potential hit from tariffs and higher oil-based derivatives on the heels of the conflict in the Middle East, we think Clorox will prudently use a combination of cost-savings endeavors, price pack architecture, and surgical price hikes to dull any lasting hit to the margins.

Read more about Clorox here.

Tractor Supply

• Morningstar Price/Fair Value: 0.64
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Value
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Specialty Retail

Tractor Supply is the largest operator of retail farm and ranch stores in the United States. The company targets recreational farmers and ranchers and has little exposure to commercial and industrial farm operations. This value stock is trading at a 36% discount to our fair value estimate of $4 per share.

Tractor Supply is the largest consumer farm specialty retailer in the United States, surpassing $15.5 billion in sales in fiscal 2025. The firm has differentiated itself through its products and customer demographics, which provide underlying support to its brand-intangible assets and wide economic moat. At the end of 2025, the store base had grown about 23% over the prior five-year period, to approximately 2,600 locations, including acquired locations from Orscheln and Petsense, but only produced sales and EPS at average annual growth rates over the past three years of 3% and 2%, respectively, with profitability constrained by investments. We forecast the firm will grow to over 3,500 stores by 2035 as it expands into big-box centers in underpenetrated exurbs, with Petsense accounting for roughly 300 units.

The firm competes with big-box retailers like PetSmart and Lowe’s, which also have solid pricing power because of scale and distribution advantages across numerous categories. Tractor Supply also has smaller regional peers that tend to lack its scale and expansive product mix. We believe Tractor Supply derives its success from its evolving customer-led store layout, which makes it a destination store for many of its customers. In addition, since the firm focuses on active do-it-yourself rural consumers, many of its products are higher-end than those found in retailers that focus on casual consumers.

We think Tractor Supply has reached critical mass in its consumer segment, with efficiency gains ahead from category expansions such as side-lot garden centers, pet prescriptions, and fusion-format store updates, which should drive sales and profit growth. Better customer attribution data, improved bargaining power with vendors, and more sophisticated logistics should also improve inventory levels and cash conversion. Additionally, stable gross margins thanks to strong private-label penetration and operating cost leverage from scale should help operating margins average 10.3% throughout our forecast. Despite the strides made, investments to reach the big barn customer and expand the final mile could limit near-term operating margin upside.

Read more about Tractor Supply here.

Sony Group

• Morningstar Price/Fair Value: 0.64
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Value
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Consumer Electronics

Sony Group is a conglomerate with consumer electronics roots, which not only designs, develops, produces, and sells electronic equipment and devices, but also is engaged in content businesses, such as console and mobile games, music, and movies. The stock is trading at a 36% discount to our fair value estimate of $32.50 per share.

As technologies and consumer preferences change rapidly, it is generally difficult for consumer electronics companies to build an economic moat. The replacement cycle for digital appliances is usually four to six years, but as most products are commoditized, it is difficult for manufacturers to build an ecosystem that prevents customers from switching to other brands. As a result, Sony’s profitability on electronics had been unstable in the past, while its music, movies, and financial-services businesses have generated solid results.

Over the past decade, Sony has transformed its business model to enable more solid and stable growth by reducing the volatility of the consumer electronics business and by aggressively investing in acquiring content for its entertainment businesses such as music, movies, and games.

In the consumer electronics business, profits are generated from digital cameras and audio equipment, where Sony has strengths, while the TV business is thoroughly focused on avoiding losses by focusing on premium products and strictly managing inventories.

In the music and movie businesses, Sony has been able to seize growth opportunities, such as the expansion of the streaming market, by expanding its content and exploring new artists.

The image sensor business has the largest global market share. The majority of sales come from the mobile market, which is benefiting from the strong demand for improved image quality in smartphone cameras. However, unlike the entertainment businesses, image sensors require high capital investment and research and development, and with such high fixed costs, we believe the profitability of the business is not high enough.

PlayStation is Sony’s largest revenue-generating business. While user migration from PS4 to PS5 is progressing well, rising game development costs and competition from other platforms such as Steam are becoming a concern for the business.

Read more about Sony Group here.

Microsoft

• Morningstar Price/Fair Value: 0.64
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Value
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Software—Infrastructure

Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. Shares of this value stock are trading at a 36% discount to our fair value estimate of $600 per share.

Microsoft is one of three public cloud providers that can deliver a wide variety of PaaS/IaaS solutions at scale. Based on its investment in OpenAI, the company has also emerged as a leader in AI. Microsoft has also enjoyed great success in upselling users on higher-priced Office 365 versions, notably to include advanced telephony features. These factors have combined to drive a more focused company that offers impressive revenue growth with high and expanding margins and deepening ties with customers.

We believe that Azure is the centerpiece of the new Microsoft. Even though we estimate it is already an approximately $75 billion business, it is still growing at approximately 30% annually. Azure has several distinct advantages, including that it offers customers a painless way to experiment and move select workloads to the cloud, creating seamless hybrid cloud environments. Since existing customers remain in the same Microsoft environment, applications and data are easily moved from on-premises to the cloud. Microsoft can also leverage its massive installed base of all Microsoft solutions as a touch point for an Azure move. Azure also is an excellent launching point for secular trends in AI, business intelligence, and Internet of Things, as it continues to launch new services centered around these broad themes.

Microsoft is also shifting its traditional on-premises products to become cloud-based SaaS solutions. Critical applications include LinkedIn, Office 365, Dynamics 365, and the Power Platform, with these moves now beyond the halfway point and no longer a financial drag. Office 365 retains its virtual monopoly in office productivity software, which we do not expect to change in the foreseeable future. Lastly, the company is also pushing its gaming business increasingly toward recurring revenues and residing in the cloud. We believe that customers will continue to drive the transition from on-premises to cloud solutions, and revenue growth will remain robust with margins continuing to improve for the next several years.

Read more about Microsoft here.

Zimmer Biomet

• Morningstar Price/Fair Value: 0.70
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Value
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Medical Devices

Zimmer Biomet designs, manufactures, and markets orthopedic reconstructive implants as well as supplies and surgical equipment for orthopedic surgery. The stock is trading at a 30% discount to our fair value estimate of $130 per share.

Zimmer Biomet is the market leader in large-joint reconstruction, and we expect aging baby boomers and improving technology suitable for younger patients to fuel solid demand for hip and knee replacement that should offset price declines. Zimmer stumbled into a series of pitfalls in 2016-17, including integration issues, supply and inventory challenges, and quality concerns. The firm’s efforts to turn itself around have been admirable, though the pandemic slowed progress. Despite all the improvement, the firm still hasn’t reached consistent growth and profitability gains.

Zimmer’s strategy is two-pronged. First, it is focused on cultivating close relationships with orthopedic surgeons who make the brand choice. High switching costs and high-touch service keep the surgeons closely tied to their primary vendor. This tight relationship and vendor loyalty also help explain why market share shifts in orthopedic implants are glacial, at best. As long as Zimmer can launch comparable technology within a few years of its rivals, it can remain in a strong competitive position. Nevertheless, we think surgeon influence will inevitably erode, as the practice of medicine changes in response to healthcare reform. Over the long term, it will be more difficult for surgeons to run private practices profitably, and more of them will be open to employment at hospitals.

Second, the firm aims to accelerate growth through innovative products and improved execution. The latter is critical, in our view, to realizing the firm’s potential. Despite a range of structural competitive advantages, Zimmer Biomet in 2016-18 failed to shine in operations, which dragged down returns. Former CEO Bryan Hanson delivered substantial signs of progress. Now, current CEO Ivan Tornos must continue the progress on robotic technology placements (especially in outpatient settings), related consumable product pull-through, and expansion of the firm’s digital portfolio. Additionally, we anticipate the firm will flex its advantage in key areas, including extremities, trauma, and collaborations that involve sensor and digital technologies to improve surgical workflow.

Read more about Zimmer Biomet here.

GE HealthCare Technologies

• Morningstar Price/Fair Value: 0.70
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Value
• Morningstar Capital Allocation Rating: Standard
• Industry: Medical Devices

GE HealthCare Technologies is a medical technology firm with the leading market share in imaging and ultrasound equipment. This value stock is trading at a 30% discount to our fair value estimate of $88 per share.

Wide-moat GE HealthCare is a top-three global leader in the medical imaging market. It has a firmly established footprint in hospitals and health networks around the world, and it is positioned to benefit from long-term healthcare trends, including aging populations, the growing demand for early detection and monitoring of cancer and other diseases, and increasing utilization of minimally invasive and noninvasive procedures.

The medical imaging industry is a somewhat consolidated oligopoly, with the top three players—GEHC, Siemens Healthineers, and Philips—controlling about 70% of the market. They largely compete by improving their technology and features rather than outright price competition. Like its peers, GEHC has invested heavily over many decades to build a comprehensive product portfolio and extensive 24-hour servicing networks, which are crucial for selling to big hospitals and health networks. Its large installed base also facilitates sales of software platforms and multiyear servicing contracts that further deepen GEHC’s integration into healthcare providers’ workflows. Unlike its peers, GEHC is also a major player in the pharmaceutical diagnostics market, which has attractive returns and potential upside with respect to the fast-growing theranostics market.

Although smaller players can compete in specific technologies or geographies, we think it would take a very long time for a newcomer to build the portfolio breadth, servicing networks, reputation, and large installed base necessary to compete with the top three players.

GEHC was spun out from General Electric in January 2023. Since then, management has committed to higher ongoing spending on research and development. We think this is an important measure to keep pace with peers. Examples of recent developments include the integration of artificial intelligence into imaging workflows, the launch of photon-counting computed tomography, the recent approval of Alzheimer’s disease drugs, which could substantially increase demand for magnetic resonance procedures, and the adoption of 3D mammography.

Read more about GE HealthCare Technologies here.

Reckitt Benckiser Group

• Morningstar Price/Fair Value: 0.72
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Value
• Morningstar Capital Allocation Rating: Standard
• Industry: Household and Personal Products

Our list of the best value stocks to buy now closes with Reckitt Benckiser. Recently rebranded under the corporate name Reckitt, it sells a portfolio that includes a variety of household and consumer health brands, such as Lysol, Finish, Durex, and Mucinex, many of which hold a number-one or number-two position in their categories globally. This stock is 28% undervalued relative to our fair value estimate of $18.60 per share.

The majority of Reckitt’s portfolio is well positioned in categories that benefit from secular growth drivers across consumer health and hygiene. The acquisition of Mead Johnson has added to its portfolio a leadership position in infant nutrition—a segment with substantial pricing power. However, the timing of the transaction, ahead of a period of declining birthrates and intensified competition in China, posed significant challenges and has dampened revenue growth in the last few years. Management sold the infant nutrition business in China in 2021, and the remaining US-focused infant nutrition business will likely be carved out once the uncertainty around the ongoing premature infant formula litigation is resolved. At the same time, we expect that further secular declines in birthrates in the US will continue to be a drag on the company’s mid-single-digit growth ambitions.

Reckitt’s brands command premium prices in attractive categories across consumer health and home care. Compared with some of its closest competitors, Reckitt has a lower portfolio footprint in laundry care—and especially the somewhat commoditized laundry detergent segment—which partially explains the company’s higher operating margin of mid-20s compared with high teens on average for peers. The automatic dishwashing category, where Reckitt is the undisputed global market leader with the brand Finish, is especially attractive given the very low global penetration of dishwashers and their accelerated adoption, given rising household incomes and increasing awareness of their convenience and resource efficiency benefits.

In the health segment, over-the-counter accounts for almost half of revenue and benefit from secular growth trends such as population aging and rising disposable income in emerging markets. Intimate wellness is another high-growth category that benefits from increasing consumer awareness and social acceptance.

The many changes in leadership and the slew of bad news in recent years have left Reckitt in a somewhat vulnerable position, and the company will benefit from more decisive portfolio interventions and the resolution of legal concerns.

Read more about Reckitt Benckiser Group here.

How to Find More of the Best Value Stocks to Buy

Investors who’d like to extend their search for top value stocks can do the following:

• Investors can use the Morningstar Investor screener to more easily compare value stocks to each other. One way would be to screen by Stock Style under the Criteria drop-down menu, choosing large value, mid-value, small value, or some combination thereof. Then once you have your results, click on Data & Columns to select Financials data points in the Stocks area. These might be valuation metrics like price/earnings ratios or profitability measures like return on assets, among others. Then click Update. Once back to the list of stocks, click on the data point that matters most to you to rank the list on that particular data point.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
• Investors who’d rather invest in value stocks through a managed product like an exchange-traded fund or a mutual fund can find ideas to research further in The Best Value Funds.