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

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 Inc3,195.34 USD0.32
Apple Inc116.59 USD0.48
Caterpillar Inc175.08 USD0.26
Guidewire Software Inc122.71 USD2.75
McDonald's Corp218.33 USD-0.46
Microsoft Corp215.23 USD0.64
Millicom International Cellular SA39.76 USD-0.58
Millicom International Cellular SA DR28.83 USD1.62
Oracle Corp57.76 USD0.61
Salesforce.com Inc247.63 USD0.33
SAP SE ADR119.25 USD0.98
UnitedHealth Group Inc337.94 USD1.43
Vertex Pharmaceuticals Inc226.71 USD3.95
Visa Inc Class A211.00 USD0.05
Volkswagen AG ADR17.38 USD-4.03
Walmart Inc151.60 USD-0.15

About Author

Susan Dziubinski

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

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