2 Value Stocks to Buy at a Discount

On the Sept. 28, 2026, episode of The Morning Filter podcast, hosts Susan Dziubinski and Morningstar Chief US Market Strategist Dave Sekera discuss why he thinks that CNH Industrial CNH and Becton Dickinson BDX stock still have upside ahead. Here is an excerpt from the show.

What Could Drive CNH Industrial Stock Higher?

Susan Dziubinski: CNH Industrial is your next pick this week. Give us the highlights.

David Sekera: CNH is a five-star-rated stock at a 38% discount to fair value. Not much of a dividend yield. I think it’s a little bit under 1%. We rate the company with a Medium Uncertainty and a narrow economic moat, that narrow economic moat being based on switching costs and intangible assets.

Dziubinski: CNH’s stock is up quite a bit this year, I think about 43%. Why do you think this one has more upside ahead?

Sekera: It’s been a pick a couple of times over the past two years. I think the most recent pick was on the July 27 episode of The Morning Filter. It’s up 30% since then. And when you think about what this company does, I mean, they’re very leveraged to the agricultural cycle. In this case, 80% of the revenue comes from agricultural equipment, the other 20% from construction. And of course, the construction equipment has a huge tailwind behind it from the AI buildout boom. But on the agriculture side, we’ve seen some big increases in corn prices, wheat, and soybeans. These are up very significantly this year. I think we’re expecting more of that yet to come.

Now, this is a stock that has slid over the past three years, but we think that we’re at pretty depressed earnings right now. We are looking for some normalization. We’re only looking for, call it, 50 cents a share here in 2026, but based on our forecast for top-line growth as well as some operating margin expansion, that gets to a dollar next year. On a forward PE basis, it’s trading at 22 times, yet we’re looking for a five-year compound annual growth rate of earnings to get all the way up to 32%. If you look at a PEG ratio, that’s price/earnings growth, it’s trading well under 1.0. In this case, it’s only 0.7. Again, I think this one still has a lot of upside potential.

Is BDX a Buy?

Dziubinski: Your final stock pick is a name that we used to talk about a lot, it seems, and we haven’t actually talked about in a while, and that’s Becton Dickinson. Give us the bird’s-eye view on it.

Sekera: The stock’s currently at an 18% discount, 2.3% dividend yield. We rate it with a Medium Uncertainty, so that’s enough to get it into 4-star territory. And we rate the company with a narrow economic moat based on its cost advantages and switching costs.

Dziubinski: Becton’s stock is up about 30% from its lows in June. Why do you think this one has more room to run?

Sekera: And this is one, as you mentioned before, we have talked about a number of times. I think it was a pick on the Sept. 22, 2025 episode of The Morning Filter. To some degree, the investment thesis now is still the same investment thesis that we had back then. And really, just that over time we’re looking for more normalized growth and margins. This, of course, was a company that had a lot of disruptions in its business from how the pandemic played out at the beginning, and then everyone bought too much forward, and then you kind of had to give back the next couple of years thereafter. We’re really just looking for the business here, which is life sciences and diagnostic equipment, to really stabilize and looking for the longer-term growth to come back. And in this case, I think that’s what we’re starting to see.

I think we’re going to start getting more investor confidence coming back in this name after the amount of volatility that it had the past couple of years. Running through the numbers here, third-quarter revenue is up a good, healthy 5.4%. In fact, management guided toward sales growth being at the higher end of its prior range, and they also raised the midpoint of their earnings guidance by 10 cents. The earnings guidance right now is $12.62 to $12.72 per share. If you use the midpoint of that, the stock’s only trading at 14.5 times. If you look at our guidance or our forecast here, we’re looking for a five-year compound annual growth rate for revenue of 3.9%. We’re looking for the operating margin to expand as it normalizes over time, and we get to a compound annual growth rate over the next five years of 22%. Based on that 14.5 times midpoint of the current guidance after it was just increased, I think it looks like a good value-oriented stock.

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