Growth stocks had a sizable performance advantage over value stocks in 2023: The Morningstar US Growth Index outperformed the Morningstar US Value Index by more than 26 percentage points for the year. But that outperformance has disappeared in 2024 as value stocks have edged out growth stocks for the year to date.
We’ve put together a list of the best value stocks to buy for the long term, using these criteria:
- The stocks land in the value portion of the Morningstar Style Box.
- The stocks are from companies included on Morningstar’s list of the Best Companies to Own for 2024. 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.
- The stocks are cheap, which means they’re trading below Morningstar’s fair value estimates.
This post originally appeared at Morningstar.