2 Cheap Growth Stocks to Buy

The undervalued stocks of these wide-moat large companies look attractive today.

Susan Dziubinski 2 November, 2023 | 4:58AM
Facebook Twitter LinkedIn

Circuit board

Today, we’re looking at two cheap large-cap growth stocks to buy taken from Morningstar’s Best Companies to Own list. Our Best Companies to Own list includes companies with significant competitive advantages—or what we call wide economic moats. These companies also have predictable cash flows and are well positioned to confront an economic slowdown. The stocks we’re focusing on today are both undervalued according to Morningstar’s metrics and land in the large-growth portion of the Morningstar Style Box.

2 Cheap Growth Stocks to Buy

  1. ASML Holding ASML
  2. AstraZeneca AZN

Our first cheap large growth stock to buy is ASML Holding ASML. ASML is the market share leader in photolithography systems used in the manufacturing of semiconductors. ASML continues to enjoy strong growth in 2023 despite a soft chip market, in large part due to demand out of China. Morningstar expects this demand to moderate going forward, both organically and due to recently updated U.S. export restrictions. But we nevertheless believe ASML will make up for it with demand in other geographies. We think shares are worth $750 each.

Our second cheap large growth stock to buy is AstraZeneca AZN. The firm sells branded drugs across several major therapeutic classes. Morningstar thinks Astra’s pipeline is one of the strongest in the drug group, and we think the company is developing several key products that hold blockbuster potential. We think the company’s launched cancer drugs are well positioned as treatments of hard-to-treat cancers. These drugs also carry strong pricing power to support higher margin sales. Astra is well-positioned in the respiratory and diabetes spaces, too, but here, the firm has less pricing power. We think shares are worth $78 each.

Get the Latest Stock Insights in Your Inbox

Subscribe Here

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
ASML Holding NV ADR956.22 USD2.35Rating
AstraZeneca PLC ADR78.54 USD0.46Rating

About Author

Susan Dziubinski

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

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy       Disclosures        Accessibility