Susan Dziubinski: Hi. I’m Susan Dziubinski with Morningstar. It’s almost time for the big game: The Kansas City Chiefs and the Philadelphia Eagles will meet in New Orleans on Sunday. And in what has become an annual tradition, companies will spend millions of dollars to advertise their products during the broadcast.
At Morningstar, we think it’s a gamble to buy the stock of a company simply because it’s advertising during the big game and you’re hoping for a postgame pop in the stock price. We suggest following Morningstar’s playbook instead: Buy undervalued stocks of high-quality companies and hold them for the long term. We think that’s the winning strategy for any market.
Here’s a look at three high-quality companies advertising during the game whose stocks are significantly undervalued. We think these are great stocks to buy for the long term.
3 Undervalued Stocks to Buy Before the Big Game This Weekend
- Anheuser-Busch InBev BUD
- Mondelez MDLZ
- Hershey HSY
The first stock on our list of undervalued stocks to buy before the big game is Anheuser-Busch InBev BUD. AB InBev is the largest brewer in the world and one of the world’s largest consumer product companies. We think the company has carved out a wide economic moat, which means that we expect it to be able to effectively fight off competitors for two decades or more. Inflation and negative publicity about the marketing of Bud Light in the US have hurt results and the stock’s performance. Even so, the company has one of the strongest cost advantages in our consumer defensive coverage and is among the most efficient operators. We think the stock is significantly undervalued today.
Read Morningstar’s full report about Anheuser-Busch InBev.
The next cheap stock to buy and hold ahead of the big game is Mondelez MDLZ. Mondelez is a global leader in snacks, and its portfolio includes brands like Oreo, Chips Ahoy, Triscuit, and Ritz—and in fact Ritz will be making its commercial debut during the broadcast. We think the company has carved out a wide economic moat thanks to its entrenched relationships with retailers and its economies of scale. We expect new tactics will drive growth in emerging markets and efforts to remove inefficiencies should unlock cost savings.
Read Morningstar’s full report about Mondelez.
The final cheap stock we like ahead of the big game is Hershey HSY. Hershey will be advertising its Reese’s brand during the game, but its robust portfolio includes other familiar brands like Kit Kat, Kisses, and SkinnyPop. We think the company’s dominant market share position here in the US and its vast resources to invest to support its brands provide Hershey with a wide economic moat. We also think the company’s recently acquired lineup of salty brands complements its confectionary brands and could lead to innovation blending the two taste profiles.
Read Morningstar’s full report about Hershey.
For more stock ideas, be sure to subscribe to Morningstar’s channel and visit Morningstar.com.
Morningstar director Erin Lash and analyst Verushka Shetty provided the research behind this segment.
Watch 3 Top Growth Stocks to Buy and Hold for 2025 for more from Susan Dziubinski.
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