10 Best Value Stocks to Buy for 2026
Value stocks aren’t typically the most exciting investments, but they can often provide steady capital gains without causing investors to lose any sleep during periods of market volatility. Value stocks are typically mature companies with stable revenues and attractive share prices based on fundamental metrics, such as price-to-earnings (P/E), price-to-sales (PS) and price-to-book (P/B) ratios.
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The best value stocks have an attractive fundamental valuation, a healthy balance sheet, a stable or growing market share in a sizable industry, and a long track record of profitability. Here are 10 of Morningstar analysts’ top value stocks to buy for 2026:
| Stock | Implied upside |
| UnitedHealth Group Inc. (ticker: UNH) | 22% |
| Salesforce Inc. (CRM) | 24% |
| T-Mobile US Inc. (TMUS) | 18% |
| PepsiCo Inc. (PEP) | 19% |
| Verizon Communications Inc. (VZ) | 32% |
| Adobe Inc. (ADBE) | 67% |
| Pfizer Inc. (PFE) | 34% |
| Medtronic PLC (MDT) | 12% |
| Lockheed Martin Corp. (LMT) | 3% |
| Bristol-Myers Squibb Co. (BMY) | 21% |
UnitedHealth Group Inc. (UNH)
UnitedHealth is the largest U.S.-based managed health care firm, providing health plans and health care services to a wide range of customers. The company’s operations include its UnitedHealthcare health insurance business, its OptumRx pharmacy benefit manager business and its Optum Health integrated care delivery business. Analyst Julie Utterback says UnitedHealthcare’s integrated model has historically provided impressive returns, leading to other managed care organizations emulating UnitedHealth. Utterback says the company aims to grow earnings between 13% and 16% annually over the long term. Morningstar has a “buy” rating and $427 fair value estimate for UNH stock, which closed at $348.97 on Jan. 6.
Salesforce Inc. (CRM)
Salesforce is the world’s largest provider of cloud-based customer relationship management software. Salesforce may no longer be the high-growth stock it once was, but analyst Dan Romanoff says the stock has morphed into an attractive value investment. Artificial intelligence technology is a popular investment trend on Wall Street heading in 2026, and Romanoff says Salesforce is gaining momentum with its Agentforce and Data 360 AI offerings. Salesforce has an impressive customer retention rate of above 90%, and Romanoff says that rate will likely continue to improve. Morningstar has a “buy” rating and $325 fair value estimate for CRM stock, which closed at $262.90 on Jan. 6.
T-Mobile US Inc. (TMUS)
Following its 2020 merger with Sprint, T-Mobile is the second-largest U.S. wireless provider. T-Mobile has generated consistent growth in a challenging industry, even during economic downturns. Analyst Michael Hodel says T-Mobile’s pricing and margins have been soft as of late, but the company’s ability to steadily grow its market share is a testament to its superb execution. Hodel says one key catalyst has been T-Mobile’s aggressive marketing surrounding network quality. He predicts steady price increases and expanding cash flow in the long term. Morningstar has a “buy” rating and $235 fair value estimate for TMUS stock, which closed at $198.60 on Jan. 6.
PepsiCo Inc. (PEP)
PepsiCo is a global beverage and snack company and owner of Frito-Lay and Quaker. Analyst Dan Su says PepsiCo’s North American snack business has lagged, but he anticipates cost cuts and consumer engagement efforts will help the division return to profitable growth. Su also expects further growth from Latin America, Asia and other international markets. He says PepsiCo’s stock is undervalued given his expectations for 4% annual sales growth and 15% average operating margins over the next 10 years. The company also plans to increase capital returns. Morningstar has a “buy” rating and $166 fair value estimate for PEP stock, which closed at $138.96 on Jan. 6.
Verizon Communications Inc. (VZ)
Verizon Communications is the largest U.S. wireless carrier. Hodel says Verizon may struggle to keep pace with the growth of T-Mobile and AT&T in the next several years, but the stock is attractively valued given its high-quality network, valuable brand, loyal customer base and attractive dividend. He says Verizon’s massive scale has enabled the company to generate the highest returns on capital in the wireless industry. Finally, Hodel says Verizon’s Frontier Communications acquisition will boost its fiber assets, providing broadband and wireless bundling opportunities. Morningstar has a “buy” rating and $53 fair value estimate for VZ stock, which closed at $40.30 on Jan. 6.
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Adobe Inc. (ADBE)
Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe’s stock lagged in 2025, but Romanoff says the company has exceeded his revenue expectations for six consecutive quarters. He says the fact that Adobe’s remaining performance obligations and annual recurring revenue have been outgrowing its overall revenue is a positive indicator for 2026. Romanoff says Adobe’s recent share price weakness is a buying opportunity for long-term value investors and Adobe could even potentially expand its margins in the next five years. Morningstar has a “buy” rating and $560 fair value estimate for ADBE stock, which closed at $335.99 on Jan. 6.
Pfizer Inc. (PFE)
Pfizer is one of the world’s largest pharma companies and has a diversified portfolio of drugs for treating a variety of conditions. Its top drugs include its Eliquis blood thinner, its Vyndaqel cardiomyopathy treatment and its Prevnar pneumococcal vaccine. Analyst Karen Andersen says Pfizer’s overall numbers have been weighed down by declines in COVID-19 product sales, but Pfizer’s stable dividend and potential to return to revenue growth in the long term suggest the stock is significantly undervalued. Andersen has particularly high hopes for cancer drug Padcev. Morningstar has a “buy” rating and $34 fair value estimate for PFE stock, which closed at $25.43 on Jan. 6.
Medtronic PLC (MDT)
Medtronic is a health care device manufacturer that operates in four segments: cardiovascular, medical surgical, neuroscience and diabetes. The company sells medical devices such as pacemakers, defibrillators, spinal implants and ventilators. Analyst Debbie Wang says Medtronic has hit its revenue growth guidance targets, and profitability has also improved in recent quarters. Wang says Medicare has established final reimbursement for renal denervation, which should improve Medtronic’s outlook for 2026. She says Medtronic’s Pulsed Field Ablation franchise is also a key growth source in coming years. Morningstar has a “buy” rating and $112 fair value estimate for MDT stock, which closed at $100.31 on Jan. 6.
Lockheed Martin Corp. (LMT)
Lockheed Martin is one of the world’s largest defense, security and intelligence firms and is also an important supplier to NASA and other non-defense government agencies. The company produces missile and targeting systems, as well as mission systems for ships, submarines and aircraft. It also manufactures Black Hawk and Seahawk military helicopters. Analyst Nicolas Owens says investor concerns about the F-35 program are overblown. Owens says F-35s will remain a critical part of U.S. military operations and Lockheed will be a reliable free cash flow machine. Morningstar has a “buy” rating and $538 fair value estimate for LMT stock, which closed at $522.04 on Jan. 6.
Bristol-Myers Squibb Co. (BMY)
Bristol-Myers Squibb is a biopharmaceutical company that specializes in oncology, immunology and cardiovascular therapeutics. The company’s leading drugs include blood thinner Eliquis, lung cancer drug Opdivo and autoimmune disease drug Orencia. Andersen says a recently announced drug pricing agreement with the Trump administration removes a key source of uncertainty for investors over the next three years. She says patent expiration concerns are creating buying opportunities for investors who appreciate Bristol’s valuable drug pipeline, which includes blood cancer drug candidates iberdomide and mezigdomide. Morningstar has a “buy” rating and $66 fair value estimate for BMY stock, which closed at $54.42 on Jan. 6.
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10 Best Value Stocks to Buy for 2026 originally appeared on usnews.com
Update 01/07/26: This story was published at an earlier date and has been updated with new information.