The 10 Best Companies to Invest in Now. These undervalued stocks of high-quality companies are attractive investments today according to Morningstar.

Investors seeking to capitalize on undervalued stocks of high-quality companies may find the following selections particularly compelling. According to Morningstar, these companies possess strong fundamentals, including sustainable competitive advantages, predictable cash flows, and robust management teams. As of late 2024, they were trading below their fair value estimates, presenting potential opportunities for value investors.​

1. Yum China Holdings (YUMC)
   As China's largest restaurant chain operator, encompassing brands like KFC and Pizza Hut, Yum China has demonstrated significant growth by expanding its restaurant count by 36% from 2019 to 2022. With the easing of China's zero-COVID policy, these new establishments are expected to contribute substantially to revenue and margins. Morningstar's fair value estimate for Yum China is $80, while it was trading at $42.05 as of November 2024.

2. Roche Holding (RHHBY)
   This Swiss pharmaceutical giant leads in both biotech and diagnostics, positioning it uniquely to advance global healthcare towards more personalized and cost-effective solutions. Morningstar estimates Roche's fair value at $56, with a trading price of $35.43 as of November 2024.

3. Pfizer (PFE)
   Known for its diverse drug portfolio, Pfizer's strong cash flows and substantial size provide significant advantages in drug development. Morningstar's fair value estimate for Pfizer is $47, compared to its trading price of $29.30 as of November 2024.

4. The Estée Lauder Companies (EL)
   A leader in the global cosmetics industry, Estée Lauder benefits from a wide economic moat due to its strong brand portfolio and global reach. Morningstar assesses its fair value at $200, with the stock trading at $138.95 as of November 2024.

5. Zimmer Biomet Holdings (ZBH)
   Specializing in medical devices, particularly orthopedic products, Zimmer Biomet maintains a competitive edge through its innovative technologies and established market presence. Morningstar's fair value estimate is $175, while it traded at $116.90 as of November 2024.

6. Imperial Brands (IMBBY)
   As the world's fourth-largest tobacco company, Imperial Brands is adapting to industry shifts by investing in new product categories. Morningstar estimates its fair value at $36, with a trading price of $24.15 as of November 2024.

7. GSK plc (GSK)
   This British pharmaceutical company boasts a diverse product lineup and a strong pipeline of new drugs. Morningstar's fair value estimate for GSK is $54, compared to its trading price of $36.65 as of November 2024.

8. Campbell Soup Company (CPB)
   A staple in the food industry, Campbell Soup has a long-standing presence in households and continues to innovate within its product offerings. Morningstar assesses its fair value at $61, with the stock trading at $41 as of November 2024.

9. Corteva, Inc. (CTVA)
   An agricultural chemical and seed company, Corteva benefits from its strong research and development capabilities, supporting advancements in agricultural productivity. Morningstar's fair value estimate is $67, while it traded at $45.20 as of November 2024.

10. British American Tobacco (BTI)
    This tobacco company is focusing on reduced-risk products to navigate the evolving industry landscape. Morningstar estimates its fair value at $47, with a trading price of $31.90 as of November 2024.

Investors should conduct thorough due diligence and consider their individual financial goals and risk tolerance before making investment decisions. While these companies are identified as undervalued by Morningstar, market conditions can change, and it's essential to stay informed about the latest developments.