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10 Best Value Stocks to Buy for 2026

Value stocks aren’t typically the most exciting investments, but they can often provide steady capital gains without causing investors to lose any sleep during periods of market volatility. Value stocks are typically mature companies with stable revenues and attractive share prices based on fundamental metrics, such as price-to-earnings (P/E), price-to-sales (PS) and price-to-book (P/B) ratios.

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The best value stocks have an attractive fundamental valuation, a healthy balance sheet, a stable or growing market share in a sizable industry, and a long track record of profitability. Here are 10 of Morningstar analysts’ top value stocks to buy for 2026:

Stock Implied upside
UnitedHealth Group Inc. (ticker: UNH) 22%
Salesforce Inc. (CRM) 24%
T-Mobile US Inc. (TMUS) 18%
PepsiCo Inc. (PEP) 19%
Verizon Communications Inc. (VZ) 32%
Adobe Inc. (ADBE) 67%
Pfizer Inc. (PFE) 34%
Medtronic PLC (MDT) 12%
Lockheed Martin Corp. (LMT) 3%
Bristol-Myers Squibb Co. (BMY) 21%

UnitedHealth Group Inc. (UNH)

UnitedHealth is the largest U.S.-based managed health care firm, providing health plans and health care services to a wide range of customers. The company’s operations include its UnitedHealthcare health insurance business, its OptumRx pharmacy benefit manager business and its Optum Health integrated care delivery business. Analyst Julie Utterback says UnitedHealthcare’s integrated model has historically provided impressive returns, leading to other managed care organizations emulating UnitedHealth. Utterback says the company aims to grow earnings between 13% and 16% annually over the long term. Morningstar has a “buy” rating and $427 fair value estimate for UNH stock, which closed at $348.97 on Jan. 6.

Salesforce Inc. (CRM)

Salesforce is the world’s largest provider of cloud-based customer relationship management software. Salesforce may no longer be the high-growth stock it once was, but analyst Dan Romanoff says the stock has morphed into an attractive value investment. Artificial intelligence technology is a popular investment trend on Wall Street heading in 2026, and Romanoff says Salesforce is gaining momentum with its Agentforce and Data 360 AI offerings. Salesforce has an impressive customer retention rate of above 90%, and Romanoff says that rate will likely continue to improve. Morningstar has a “buy” rating and $325 fair value estimate for CRM stock, which closed at $262.90 on Jan. 6.

T-Mobile US Inc. (TMUS)

Following its 2020 merger with Sprint, T-Mobile is the second-largest U.S. wireless provider. T-Mobile has generated consistent growth in a challenging industry, even during economic downturns. Analyst Michael Hodel says T-Mobile’s pricing and margins have been soft as of late, but the company’s ability to steadily grow its market share is a testament to its superb execution. Hodel says one key catalyst has been T-Mobile’s aggressive marketing surrounding network quality. He predicts steady price increases and expanding cash flow in the long term. Morningstar has a “buy” rating and $235 fair value estimate for TMUS stock, which closed at $198.60 on Jan. 6.

PepsiCo Inc. (PEP)

PepsiCo is a global beverage and snack company and owner of Frito-Lay and Quaker. Analyst Dan Su says PepsiCo’s North American snack business has lagged, but he anticipates cost cuts and consumer engagement efforts will help the division return to profitable growth. Su also expects further growth from Latin America, Asia and other international markets. He says PepsiCo’s stock is undervalued given his expectations for 4% annual sales growth and 15% average operating margins over the next 10 years. The company also plans to increase capital returns. Morningstar has a “buy” rating and $166 fair value estimate for PEP stock, which closed at $138.96 on Jan. 6.

Verizon Communications Inc. (VZ)

Verizon Communications is the largest U.S. wireless carrier. Hodel says Verizon may struggle to keep pace with the growth of T-Mobile and AT&T in the next several years, but the stock is attractively valued given its high-quality network, valuable brand, loyal customer base and attractive dividend. He says Verizon’s massive scale has enabled the company to generate the highest returns on capital in the wireless industry. Finally, Hodel says Verizon’s Frontier Communications acquisition will boost its fiber assets, providing broadband and wireless bundling opportunities. Morningstar has a “buy” rating and $53 fair value estimate for VZ stock, which closed at $40.30 on Jan. 6.

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Adobe Inc. (ADBE)

Adobe produces creative content software and other applications used for marketing and e-commerce. Adobe’s stock lagged in 2025, but Romanoff says the company has exceeded his revenue expectations for six consecutive quarters. He says the fact that Adobe’s remaining performance obligations and annual recurring revenue have been outgrowing its overall revenue is a positive indicator for 2026. Romanoff says Adobe’s recent share price weakness is a buying opportunity for long-term value investors and Adobe could even potentially expand its margins in the next five years. Morningstar has a “buy” rating and $560 fair value estimate for ADBE stock, which closed at $335.99 on Jan. 6.

Pfizer Inc. (PFE)

Pfizer is one of the world’s largest pharma companies and has a diversified portfolio of drugs for treating a variety of conditions. Its top drugs include its Eliquis blood thinner, its Vyndaqel cardiomyopathy treatment and its Prevnar pneumococcal vaccine. Analyst Karen Andersen says Pfizer’s overall numbers have been weighed down by declines in COVID-19 product sales, but Pfizer’s stable dividend and potential to return to revenue growth in the long term suggest the stock is significantly undervalued. Andersen has particularly high hopes for cancer drug Padcev. Morningstar has a “buy” rating and $34 fair value estimate for PFE stock, which closed at $25.43 on Jan. 6.

Medtronic PLC (MDT)

Medtronic is a health care device manufacturer that operates in four segments: cardiovascular, medical surgical, neuroscience and diabetes. The company sells medical devices such as pacemakers, defibrillators, spinal implants and ventilators. Analyst Debbie Wang says Medtronic has hit its revenue growth guidance targets, and profitability has also improved in recent quarters. Wang says Medicare has established final reimbursement for renal denervation, which should improve Medtronic’s outlook for 2026. She says Medtronic’s Pulsed Field Ablation franchise is also a key growth source in coming years. Morningstar has a “buy” rating and $112 fair value estimate for MDT stock, which closed at $100.31 on Jan. 6.

Lockheed Martin Corp. (LMT)

Lockheed Martin is one of the world’s largest defense, security and intelligence firms and is also an important supplier to NASA and other non-defense government agencies. The company produces missile and targeting systems, as well as mission systems for ships, submarines and aircraft. It also manufactures Black Hawk and Seahawk military helicopters. Analyst Nicolas Owens says investor concerns about the F-35 program are overblown. Owens says F-35s will remain a critical part of U.S. military operations and Lockheed will be a reliable free cash flow machine. Morningstar has a “buy” rating and $538 fair value estimate for LMT stock, which closed at $522.04 on Jan. 6.

Bristol-Myers Squibb Co. (BMY)

Bristol-Myers Squibb is a biopharmaceutical company that specializes in oncology, immunology and cardiovascular therapeutics. The company’s leading drugs include blood thinner Eliquis, lung cancer drug Opdivo and autoimmune disease drug Orencia. Andersen says a recently announced drug pricing agreement with the Trump administration removes a key source of uncertainty for investors over the next three years. She says patent expiration concerns are creating buying opportunities for investors who appreciate Bristol’s valuable drug pipeline, which includes blood cancer drug candidates iberdomide and mezigdomide. Morningstar has a “buy” rating and $66 fair value estimate for BMY stock, which closed at $54.42 on Jan. 6.

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10 Best Value Stocks to Buy for 2026 originally appeared on usnews.com

Update 01/07/26: This story was published at an earlier date and has been updated with new information.

What you need to breathe easier when the air is full of smoke

(CNN) — Many millions of Americans and Canadians are breathing bad air right now due to smoke from hundreds of Canadian wildfires and additional wildfires in northern Minnesota.If you’re in an affected area, it’s important to check air quality before you go anywhere this weekend, and keep certain items on hand to make life much more breathable when smoke is in the air.Wildfire smoke is a dangerous mix of gases and tiny particles – including the biggest danger to human health, particle pollution called PM2.5, microscopic particles smaller than a width of a human hair that can get stuck deep in your lungs or even enter the bloodstream, leading to more health problems down the road.Doctors are emphasizing the importance of minimizing your time in the smoke as much as possible.How to check the air qualityBefore you plan your day or go out, check AirNow.gov, says Dr. Rebecca Bascom, an attending physician who trains fellows in pulmonary and critical care medicine at Penn State.“They do real-time monitoring, so you’re able to know where your area is at a specific time, so you have both forecasting where you can try to predict what you’re going to be up against,” she said. “Our access to information that we can use for our own health planning is so much better than it used to be.”If AirNow.gov or your favorite weather app says the air quality is at an unhealthy red or the very unhealthy purple level, doctors recommend staying home.“We really should be mindful that even if we don’t have any underlying lung disease, we can still have problems breathing, particularly in this environment with the wildfire smoke,” said Dr. Rubabin Tooba, a pulmonologist with a secondary specialty in critical care medicine at Northwestern Medicine Palos Hospital.Prevention is always the best place to start with wildfire smoke, said Dr. Saema Tahir, a New York-based pulmonologist and critical care specialist.“Rule of thumb: It doesn’t matter if you’re healthy or not, young or old. Avoidance is always the best practice,” she said.A well-ventilated homeIf you’re home, close your windows and doors and run your air-conditioning. Units in windows and above doors need to be “very, very nicely sealed,” Tahir said, so they don’t allow external air in.Also make sure your home is well-ventilated, particularly in hot weather.“Heat actually creates more particles that get into the air, and then you have the smoke on top of that. It really exacerbates all the particles we’re breathing in,” Tooba said. “It is key to be in spaces where the air is ventilated since air that’s stagnant, the particles are just staying in place, and that’s not good for us, either.”To keep home air as clean as possible, use a HEPA filter. These air purification systems are designed to capture at least 99.97% of airborne particles, even the tiny ones like smoke, dust and dander, according to the US Environmental Protection Agency.Dr. Kirsten Koehler, a professor in the environmental health and engineering departments who studies air quality issues at Johns Hopkins, said it’s important to keep windows closed, keep central air on and use a MERV filter on your HVAC system if possible. MERV stands for Minimum Efficiency Reporting Value, and it measures the filter’s ability to remove airborne particles ranging from 0.3 to 10 microns.“You can tell the efficiency of those by looking at the MERV rating on those, and the higher the number, the better,” she said.With HEPA filters, it’s important to use those appropriate for the house, Koehler said. The label or the manufacturer’s website should say how big a space the filter should work in. Otherwise, you can use more than one portable air purifier, or use a smaller one in a smaller space and keep that space closed, Koehler said.If you don’t have HEPA filters, one lower-cost option is a Corsi Rosenthal box, which can be built at home using four MERV 13 filters, a box fan, duct tape and scissors. Instructions are available online.“Even building your own with just even a single filter in a box fan can provide some filtration for your space,” Koehler said. Put the filter behind the fan so it filters the air before it gets to the fan blade and doesn’t get the blade dirty.Hypoallergenic bedding can help if you have asthma or another lung condition, Tooba said. Hypoallergenic bedding like pillows, comforters and bedsheets is designed to resist common indoor allergens like pollen, pet dander and dust mites. It’s made from fabrics that are tightly woven or antimicrobial and can prevent irritants from settling into the fabric.Dos and don’ts for homeKeep trips outside the house to a minimum on heavy smoke days. Try to keep plenty of water, shelf-stable food and prescription medications on hand.If you have pets, make sure there’s extra pet food, and consider pee pads for dogs if you don’t want to take them on as many walks.“Do not try and do any heavy cleaning where there’s going to be dust in the air, because there’s already enough particulates in the air,” said Dr. Aida Capo, a pulmonologist at Hackensack Meridian Palisades Medical Center.If you have to cook, use the microwave, or use the fan to ventilate the air.“Barbecuing and the heat with the air quality is just not a good mix right now because then you’re just inhaling what you’re cooking and inhaling the outside air, too,” Tooba said.Masks are keyDoctors suggest that your emergency kit include well-fitted N95, KN95 or P100 masks. It’s good to have one per person per day.If you have children, make sure you get a child-size mask that fits properly.Don’t bother using cloth or surgical masks, since they don’t really protect against the tiny particles found in wildfire smoke.One big reason why doctors suggest that people with asthma or other breathing problems stay home is because masks can be hard for them to wear comfortably.“An N95 mask can reduce the exposure, but that’s hard to wear. People with asthma have trouble with the pull of the mask against their face, and the N95 just works on the particles and not on the vapor phase of this wildfire smoke, and both can contribute to the difficulties in the respiratory system,” Bascom said.Be prepared for breathing issuesIf you have asthma or COPD, be sure you have your regular medicine, your rescue inhaler, a spacer and a nebulizer if you use one, and don’t hesitate to get things checked out if something doesn’t feel right.“If you experience shortness of breath or chest pain, dizziness, you should obviously see your doctor right away, or go to the emergency room,” Capo said. “Allergy medicine is also recommended because poor air quality can produce worsening allergies for everybody: itchy, watery eyes, runny nose, skin discomfort.“An asthma attack can kick in at any moment with this air quality. We’ve seen it in the emergency room, and I’ve seen it in my office these past couple of days,” Capo said.Tahir said it is also really important to keep rescue inhalers as close as possible, in a bag or pocket. “And always have one nearby at home,” she said. “Sometimes, people are running to go to their car or to bed, and the inhaler is all the way across the apartment or wherever it may be. Have them in multiple areas so you’re not exerting yourself to get that inhaler.“And if it just doesn’t feel good, take yourself to the ER. It’s better to be safe than sorry, and sometimes it’s hard to backtrack, when you end up on a breathing machine, so know the alarms and take yourself to the emergency room if you need to,” she said.If you have to driveIf you’re hitting the road and expect to be in smoky conditions for a while, bring plenty of water and shelf-stable snacks, along with power bank for your devices and extra charging cables.If you’re driving through smoky areas, don’t put the top down or use the sunroof.“A best recommendation is to keep the windows closed and then use the recirculation setting on your car. This will keep pulling the car from your cabin through your air filter again and then back into the car, so you’re not pulling the outdoor air in,” Koehler said.If you have to travelBring glasses, not just contacts, since wildfire smoke can irritate the eyes. You may also want to bring lubricating eye drops or artificial tears to avoid dryness and irritation.If you’re going away for the weekend, be sure to bring at least a week’s worth of prescription medications in case you get stuck somewhere. If you’re flying, keep those medications in your carry-on rather than your checked luggage, just in case your checked bag gets delayed.Take smoke seriouslyDays with poor air quality should be taken seriously, Capo said, and people really should stay home if they can.“I always recommend people look at the air quality before they go out, and if it’s poor or you’re getting the alerts, just stay inside. This is not the time to go out for a long walk or have a picnic,” she said. “It’s just not a good idea.”The-CNN-Wire™ & © 2026 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.
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