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Undervalued Stocks in Burggraben's Portfolio Now Open for Purchase by Investors, According to Morningstar

Quarterly Stock Recommendations from Morningstar Experts Highlight Undervalued 'Moat' Stocks for Q2 of 2025

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Experts from Morningstar in the U.S. have disclosed their recommended stocks for the second quarter...
Experts from Morningstar in the U.S. have disclosed their recommended stocks for the second quarter of 2025. These stocks boast undervalued moats, making them worthwhile investments.

Undervalued Stocks in Burggraben's Portfolio Now Open for Purchase by Investors, According to Morningstar

Rewritten Article:

Morningstar's US Whiz Kids Spill Their Top Stock Picks for Q2 2025: Moat Stocks Galore

In a fresh analysis by Morningstar, their US gurus drop a bombshell with their top undervalued stock picks for Q2 2025. These are the coveted moat stocks, hidden gems that'll likely surge in the coming months.

Morningstar's crystal ball reveals a modest growth trajectory for the market overall, but earnings are lagging behind valuations, with a catch-up expected in the second half of the year. Since the market's a bargain right now, there's a tasty upside potential, according to David Sekera, Morningstar's chief US market strategist.

Morningstar's Treasure Trove of 33 Undervalued Stocks

Morningstar's crew of crackerjacks didn't just stop at shaking up the market outlook. They also published their hotly anticipated list of 33 undervalued stocks for the new quarter. Here they are:

  1. Adobe
  2. Albemarle
  3. Ally Financial
  4. Alphabet
  5. Baxter International
  6. Broadridge Financial Solutions
  7. Brown-Foreman
  8. Campbell's
  9. CNH Industrial
  10. Comcast
  11. Duke Energy
  12. Evergy
  13. Eversource Energy
  14. Exxon Mobil
  15. Federal Realty Investment Trust
  16. Fluor
  17. Global Payments
  18. HF Sinclair
  19. Healthpeak Properties
  20. International Flavors & Fragrances
  21. Kilroy Realty
  22. Kohl's
  23. Kraft Heinz
  24. Microsoft
  25. Moderna
  26. Northrop Grumman
  27. Nutrien
  28. NXP Semiconductors
  29. Paramount Global
  30. Pfizer
  31. Polaris
  32. Schlumberger
  33. Under Armour

Not all of these stocks have an unbreachable fortress to shield them from competition. Nevertheless, these stocks enjoy a competitive edge:

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Moat Stocks: Stars with Extra Shine

The fragrance company IFF boasts a fortress and still has up to 56% room for growth, says Morningstar. And get this, Morningstar has been hyping up the underdog moat stock of Alphabet for weeks, and its upside potential is approximately the same - 55%.

Morningstar has a crush on the consumer sector. Their love letter to the industry goes like this: "Defensive consumer goods stocks outperformed the market in Q1. The sector appears to be 3% overvalued at the start of Q2. However, there are juicy opportunities, especially for alcoholic beverages, according to Morningstar's Lash. In our view, both Brown-Forman and Campbells are a must-buy, with around 55% upside potential each."

The tech sector took a tumble in Q1 and lagged behind the overall market. Morningstar predicts that the tech sector is a lean 11% undervalued at the start of Q2. Dan Romanoff, senior equity analyst at Morningstar, considers the sector delightful. "We remain head-over-heels for the tech sector. We're convinced it'll benefit from a tailwind in the long run, especially in the areas of cloud computing, artificial intelligence, and the long-term expansion of semiconductor demand," he gushes. In this segment, Morningstar advocates buying the moat stock NXP Semiconductor, with a massive 59% upside potential, as well as the Microsoft stock with a 30% upside potential and the Adobe stock with a whopping 65% potential!

And don't miss: Safe Stocks: High Dividends and Low P/E Ratios in These Values

Enrichment Data:

Top Undervalued Moat Stocks

  1. Microsoft (MSFT)
  2. Rating: 5-star
  3. Discount to Fair Value: Over 20%
  4. Upside Potential: Driving forces for this stock include a strong standing in the cloud computing market, growing demand for Microsoft 365, and the potential for increased market share in the enterprise software sector[2][5].
  5. Adobe (ADBE)
  6. Rating: 4-star
  7. Discount to Fair Value: Approximately 18%
  8. Upside Potential: Adobe's creative software suite, Document Cloud, and its expanding footprint in media and marketing sectors contribute to its attractive financial performance and growth prospects[5].
  9. Alphabet Inc. (GOOGL)
  10. Rating: 5-star
  11. Discount to Fair Value: Over 25%
  12. Upside Potential: Alphabet's diversified revenue streams, high-margin YouTube and Google Search segments, and expansion into new markets provide resilience against market volatility and competition[3].
  13. Amazon (AMZN)
  14. Rating: 5-star
  15. Discount to Fair Value: Approximately 21%
  16. Upside Potential: Amazon's strong brand recognition, wide moat, and various growth opportunities in e-commerce, cloud services, and advertising make it a solid long-term investment[3].
  17. In the recently published list of undervalued stocks by Morningstar for Q2 2025, technology companies like Adobe, Alphabet, and NXP Semiconductor have been identified as moat stocks, offering substantial upside potential in the field of cloud computing, artificial intelligence, and semiconductor demand.
  18. The tech-savvy investors eyeing on heavyweight stocks may find Adobe and Alphabet, both 5-star rated moat stocks with over 18% and 25% discounts to fair value respectively, promising as their next investing opportunities, given the growing demand for creative software suite, Document Cloud, and Adobe's expanding footprint in media and marketing sectors, alongside Alphabet's diversified revenue streams, high-margin segments, and expansions into new markets.

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