Morningstar names four stocks worth buying now and for the long haul

Investment-rating agency Morningstar recommended four U.S. stocks for purchase that had not previously made its picks. Quotes of these companies fell due to short-term problems and macroeconomic concerns, making them favorable for investors focused on long-term growth.

Buying shares of LPL Financial, the largest independent U.S. broker-dealer, represents a bet on both stability and growth in the U.S. stock market, Morningstar writes. LPL Financial capitalizes on the increasing value of assets under management - the higher the market, the greater its fee income. Over the long term, its business model, protected from competitors by a "wide economic moat" due to high client switching costs and scale, allows it to steadily attract new assets, Morningstar analysts predict. They recently upgraded their assessment of the company's competitive strength, making the current 38 percent discount to "fair" value an attractive entry point for investors who expect the bullish trend to continue and the financial giant to grow organically, the agency said.

Shares of industrial conglomerate IDEX are an opportunity to invest in a quality business at 21% below its "fair" price, Morningstar analysts said. They called the company a "cash generator" that it effectively uses to buy niche market leaders, providing a high return on invested capital. IDEX's stock price fell last quarter due to duty concerns and short-term margin pressure. For investors in debt, it's a rare chance to enter an asset that "doesn't often trade at a significant discount." Morningstar predicts IDEX's margins will normalize over the next five years and revenue will steadily increase through organic growth and new acquisitions.

Freshpet is a classic growth story for risk-averse investors, the agency warns. Shares in the premium dog and cat food company have fallen 60% in 2025 after soaring in 2024 - and are now trading at half the "fair" price. The market seems to have punished the company for slowing its growth rate, which nevertheless remains strong, with Morningstar forecasting revenue growth of 14% and earnings growth of 40% on an average annualized basis over the next five years. Right now, Freshpet stock is trading at a high multiple to earnings, but if the belief in pet owners' shift to high-quality pet food comes to fruition and the company's earnings grow as forecast, the multiple could be very attractive in as little as a year or two, the agency says.

GE Healthcare is a conservative investment idea in the healthcare technology sector for investors looking for a solid company with the potential for moderate growth and quote recovery, Morningstar points out. This company is one of the leaders in the medical imaging and ultrasound equipment market, which provides it with steady cash flow. The stock is 14% cheaper relative to a "fair" valuation due to concerns about demand in China and possible duties, although these risks have already been factored into the price, the agency's analysts believe.

This article was AI-translated and verified by a human editor