Five stocks with more room to run

These stocks have gained twice as much as the S&P 500 in 2017, yet remain undervalued according to our metrics.

Susan Dziubinski 13 December, 2017 | 6:00PM
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The S&P 500 Index has shot up more than 20% for the year-to-date through Dec. 1. Story stocks like  Apple (AAPL) and  Amazon.com (AMZN) are up more than twice that. So are companies as varied as  McDonald's (MCD),  Caterpillar (CAT),  Visa (V),  UnitedHealth Group (UNH) and  Wal-Mart (WMT). Not surprisingly, these stocks are all trading in 1-, 2- or 3-star range today, meaning that they're fairly valued or overvalued by our measures.

Yet several stocks have returned at least twice as much as the S&P 500 this year but still trade in 4-star range, which suggests that these stocks remain undervalued. Here are five such high fliers that may have more gas left in the tank.

 Guidewire Software (GWRE)
Year-to-date return: 48.29%
Rating: 4 stars
Economic moat: Wide
Uncertainty: Medium

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Amazon.com Inc3,190.49 USD-3.07Rating
Apple Inc126.85 USD-2.58Rating
Caterpillar Inc242.61 USD0.67Rating
Guidewire Software Inc97.74 USD-0.97Rating
McDonald's Corp237.11 USD0.97Rating
Microsoft Corp247.18 USD-2.09Rating
Millicom International Cellular SA44.82 USD2.96Rating
Millicom International Cellular SA DR39.80 USD0.30
Oracle Corp80.15 USD-0.31Rating
Salesforce.com Inc213.89 USD-1.21Rating
SAP SE ADR139.52 USD-1.57Rating
UnitedHealth Group Inc420.89 USD0.78Rating
Vertex Pharmaceuticals Inc212.90 USD-0.98Rating
Visa Inc Class A225.97 USD-2.65Rating
Volkswagen AG ADR25.45 USD-0.82Rating
Walmart Inc140.82 USD0.44Rating

About Author

Susan Dziubinski

Susan Dziubinski  Susan Dziubinski is director of content for Morningstar.com.

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