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 Inc2,999.86 USD-4.13
Apple Inc107.12 USD-4.19
Caterpillar Inc144.38 USD-1.88
Guidewire Software Inc104.62 USD-1.87
McDonald's Corp214.97 USD-0.67
Microsoft Corp200.59 USD-3.29
Millicom International Cellular SA29.19 USD-1.55
Millicom International Cellular SA DR32.07 USD-1.55
Oracle Corp58.96 USD-2.74
Salesforce.com Inc235.99 USD-4.76
SAP SE ADR152.11 USD-3.26
UnitedHealth Group Inc292.14 USD-0.72
Vertex Pharmaceuticals Inc263.82 USD-1.41
Visa Inc Class A195.37 USD-2.59
Volkswagen AG ADR15.63 -1.29
Walmart Inc135.99 USD-1.68

About Author

Susan Dziubinski

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

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