3 Surprising Stocks to Buy During Q4 2025
These deeply undervalued stocks without economic moats look attractive today.
Susan Dziubinski: I’m Susan Dziubinski with Morningstar. Anyone familiar with Morningstar knows we’re fans of companies with economic moats. Why? Because we think that companies with moats have what it takes to compete successfully for a decade or more. And as a result, we think companies with economic moats are the best companies to own.
So investors may be surprised to learn that Morningstar doesn’t think everyone needs to only buy wide- or narrow-moat stocks. In fact, companies without economic moats can be good long-term investments too when you can pick up shares at a significant margin of safety.
So, today, we’re looking at three stocks that Morningstar’s analysts like in the fourth quarter. None of these companies have economic moats, but we think the stocks are attractively priced today for long-term investors.
3 Surprising Stocks to Buy During Q4 2025
The first no-moat stock our analysts like this quarter is Caesars Entertainment. Although tariff policies could limit travel and gaming demand in the near term, we expect Caesars to capture a high-single-digit revenue share of the $72 billion domestic commercial casino gaming market. High financing costs have raised concerns about Caesars’ elevated debt level, but management has a record of generating cash flows from strategic tie-ups to pay down debt. Caesars stock trades well below our $61 fair value estimate.
Read Morningstar’s full report on Caesars Entertainment.
The next no-moat stock our analysts like this quarter is Americold Realty Trust. The share price of this operator of temperature-controlled warehouses has tumbled during the past year as occupancy rates have fallen and rents are coming under increasing pressure. The pressure is both a function of moderating demand and incremental supply-side additions. But there are indications that speculative supply growth will be lower in coming years, which should support occupancy recovery. Trading at a significant discount to our $27 fair value, we think Americold is an attractive pick for long-term investors.
Read Morningstar’s full report on Americold Realty Trust.
The final undervalued no-moat stock our analysts like this quarter is Freshpet. Despite near-term headwinds that include slower dog adoption and cautious spending, Freshpet’s unique fresh distribution and expanding store footprint position it well for growth. Freshpet is also pursuing innovations in bag production that are driving higher-quality products at a lower cost, boosting profitability and sales growth. Morningstar thinks the stock is a compelling long-term investment opportunity as it trades at a deep discount to our $105 fair value estimate.
Read Morningstar’s full report on Freshpet.
For more stock ideas, be sure to tune into The Morning Filter each week, wherever you get your podcasts. And visit Morningstar.com, too.
Morningstar senior analysts Kris Inton, Suryansh Sharma, and Dan Wasiolek provided the research behind this segment.
Watch 3 Great Companies to Buy Trading at Fair Prices for more from Susan Dziubinski.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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