The Best Utilities Stocks to Buy
Plus: 3 Misunderstood Stocks to Buy, 6 Charts on SpaceX’s Pre-IPO Financials, and ‘Financials Look Reckless’: Lifting xAI’s Hood in the SpaceX IPO
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Stock StrategistMay 25, 2026 In this issue:
Economic moats are central to how Morningstar analysts evaluate stocks, and while generally they don’t change that often, it’s noteworthy when they do. We’re out with our latest screen of stocks with moat rating changes. This time around we’ve got three companies on the list, including an upgrade for a stock that could be an AI beneficiary. We also updated two stock sector screens this past week: utilities and healthcare. Both sectors have traditionally been defensive stocks, but since the onset of the artificial intelligence boom, some utilities have seen big rallies and turned into pricey growth stocks. But there are a number of utilities stocks that have been left behind by the rally and are trading in undervalued territory. We’ve got six names that Morningstar analysts think are cheap. Healthcare stocks, meanwhile, have largely been lagging behind the growth-stock led rally. In our latest screen of Morningstar’s coverage list, a dozen names turn up that both carry an economic moat and are undervalued. Check out the list here. These six undervalued utilities stocks look attractive today. Tori Brovet
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These 12 undervalued healthcare stocks look attractive today. Plus, how to distinguish between signal and noise when investing in stocks. The Grok maker’s losses are accelerating, as SpaceX’s IPO pulls back the curtain on a large AI model company’s financials for the first time. A look at how SpaceX makes money, how it loses money, and what the IPO cashout will look like for key investors and execs. The first public financials from Elon Musk’s company highlight Starlink’s revenue power and increased spending on AI. Ciena saw a moat upgrade, while CoStar was downgraded. The growth category, specifically technology and AI stocks, is no longer providing an excess margin of safety. Atlassian, Amphenol, and Adient are among the stocks Morningstar analysts say are still cheap despite impressive earnings beats. A look at how exploding AI revenues have driven returns, lifted non-tech stocks, added to market concentration, and sent unicorn valuations flying. There’s been a period of increased M&A activity in the sector, fueled by growing AI power demands. With a strengthening growth cycle for chip equipment creating opportunities, here’s what we think of Applied Materials stock. The Tools You Need to Invest Like an Analyst Stay connected:
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