3 Top Value Stocks to Buy and Hold for 2024

Susan Dziubinski: Hi. I’m Susan Dziubinski with Morningstar. Value stocks look undervalued relative to growth stocks today, according to Morningstar’s metrics. And many would argue that after dramatically lagging growth stocks last year, value stocks are due for a comeback.

So today, we’re sharing three value stocks to buy and hold in 2024. These names were taken from Morningstar’s Best Companies to Own list. Our Best Companies to Own list includes companies with significant competitive advantages—or what we call wide economic moats. These companies also have predictable cash flows and are well positioned to confront economic uncertainty. The stocks we’re focusing on today from that list are undervalued and land on the value side of the Morningstar Style Box.

3 Top Value Stocks to Buy and Hold for 2024

1. Campbell Soup CPB
2. Kenvue KVUE
3. Gilead Sciences GILD

The first stock on our list of three top value stocks to buy and hold for 2024 is Campbell Soup CPB. Although the company is perhaps best known for its namesake brand, its portfolio also includes other well-known brands including Prego, Swanson, V8, and Pepperidge Farm. And although inflation and weak consumer spending have taken a toll on recent results, we think the company will remain competitive thanks to its ability to leverage technology, data, and artificial intelligence to innovate and reduce costs at the same time. We think the stock is worth $61 per share.

The second name on our list of top value stocks to buy and hold in 2024 is Kenvue KVUE. Kenvue was formerly known as Johnson & Johnson’s consumer segment, which was spun off in 2023. The company is the world’s largest pure-play consumer health company, whose brands include Tylenol, Listerine, Zyrtec, and Neutrogena, among others. We think macro factors such as an aging population, the premiumization of consumer healthcare products, and growing emerging markets should provide tailwinds for Kenvue’s brands. The stock trades well below our $27.50 fair value estimate.

The final top value stock to buy and hold in 2024 is Gilead Sciences GILD. The company’s HIV and hepatitis C virus portfolio generates stellar profit margins. One of the company’s key cancer drugs recently failed to extend survival in a study that could’ve expanded its approval into the large lung cancer market, but we didn’t reduce our fair value estimate on the stock after the news. In fact, we see this drug as one piece of Gilead’s expanding oncology portfolio, which together with the established and dominant HIV portfolio, underpins our wide economic moat rating. We think this undervalued stock is worth $97 per share.

For more stock ideas, be sure to subscribe to Morningstar’s channel and visit Morningstar.com.

Morningstar director Erin Lash, strategist Karen Andersen, and analyst Keonhee Kim provided the research behind this report.

Watch “3 Top Growth Stocks to Buy and Hold for 2024″ for more from Susan Dziubinski.