10 Best Value Stocks for Long-Term Investors: Morningstar

"Are growth stocks overpriced today?" This is the question put forth by Morningstar investment specialist Susan Dziubinski in a recent blog post noting that these stocks have had a sizable performance edge over value stocks so far in 2023. Through mid-September, the Morningstar US Growth Index had outperformed the Morningstar US Value Index by more than 19 percentage points. Dziubinski cited her colleague David Sekera, senior U.S. market strategist, saying that growth stocks as a group appear fairly valued, while value stocks look attractive. "Based on our valuations, we continue to advocate for an overweight position in value, and to underweight both the growth and core categories," Sekera said. From a price perspective, value stocks look like the better long-term investment in 2023, Dziubinski concluded. Morningstar analysts have compiled a list of the best value stocks to buy for the long term. These stocks occupy the value portion of the Morningstar style box. As Dziubinski pointed out, they appear on Morningstar's 2023 list of the best companies to own, as they have wide economic moats and predictable cash flows, and their management teams make smart capital-allocation decisions, according to the research group. They are cheap, too, trading below Morningstar's fair value estimates. See the gallery for Morningstar's 10 best value stocks to buy for the long term.