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DailyBubble News

10 Growth Stocks to Buy for the Long Term: Morningstar

The Morningstar US Growth Index outperformed the Morningstar US Value Index by 26 percentage points in 2023, according to Margaret Giles, the firm’s content development editor. However, the growth index has recently dropped by nearly 6% from the end of March to May 7.

Dave Sekera, Giles’ colleague, mentioned that stocks within the growth category are now trading near fair value due to the pullback and some modest increases in fair values. He also noted that finding stocks trading at a discount to fair value within the growth category has become more challenging.

Sekera explained that as economic growth is expected to slow in the coming quarters, Morningstar prefers to invest in higher-quality companies with wide economic moats. These companies are considered to be the best to own.

For a list of the 10 most reasonably priced growth stocks from Morningstar’s best companies to own list, refer to the accompanying gallery. The year-to-date performance is accurate as of May 9.

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