Morningstar named five rising but still undervalued stocks to buy in June

Investment rating agency Morningstar has identified five of the most interesting stocks for June that are showing strong growth but are still trading at a noticeable discount to fair value. The top picks include both defensive sectors and companies that are directly benefiting from trends in the semiconductor and commodities markets.

Nutrien, the world's largest potash producer, has added more than 40% in value since the start of this year - but the stock remains 10% undervalued, according to Morningstar's opinion. The agency maintains a positive view on the stock thanks to expectations of sustained growth in potash prices, which have hit a cyclical bottom in 2024, and the fact that Nutrien's business is nearly unaffected by duties. Weakness in the company's retail business in early 2025 due to bad weather that delayed the planting season is offset by a recovery in demand in the second quarter. A 10 percent discount to fair value and a 3.5 percent dividend yield still make Nutrien shares attractive despite the lack of a sufficient margin of safety for a «buy» rating, the agency notes.

Unlike most gold mining companies, whose quotations have already recovered from the growth of gold prices, the securities of Barrick Mining (formerly Barrick Gold) are still lagging behind the market due to the suspension of production at the mine in Mali. Morningstar expects that the resolution of the dispute with the authorities of this country and the resumption of mining will be the catalysts for the growth of shares. At a current discount of more than 10% and an average level of uncertainty, Barrick shares look attractive even despite the pessimistic long-term gold price outlook of $2,000 an ounce by 2029. If precious metal prices remain high for longer, Barrick shares could show significant upside, the agency said.

American Tower is a rare representative of the exchange traded investment trust (REIT) sector with a competitive advantage and a sustainable business model based on leasing cellular infrastructure. Although American Tower stock is up 17% YTD, Morningstar believes it is in the undervalued zone at 12% to fair value. The underlying asset is cell towers, which generate stable rental revenue even in a recession. The company has strong operating metrics, growing margins, and a clear plan: increase its dividend by 5% per year through 2029, while reducing debt and buying back some shares from the market. With a 3.2% dividend yield, it's a quality defensive asset with growth elements, confirms Morningstar.

ASML remains a key beneficiary of the global semiconductor boom, particularly in the context of investments in artificial intelligence and advanced technologies. The company manufactures critical photolithography equipment needed for chip production. While the stock is up 10% YTD, the securities remain 21% below fair value according to Morningstar's estimate. ASML has a strong competitive advantage and a favorable environment, with the semiconductor industry set to invest about $800 billion in building new fabs through 2030. The dividend yield is 1.1%, which makes the securities even more attractive to investors.

Medtronic is a typical example of a so-called stock for patient investors. Despite stable fundamentals, the securities of one of the largest medical device makers have fluctuated in a narrow price range since mid-2023, but have added 9% since the beginning of 2025. Morningstar values Medtronic securities at a 22% discount to fair value. While the market may have undervalued the stock for years, the current momentum signals the potential for Medtronic's fair value to recover in the future, Morningstar believes.