4 Underrated Stocks Worth a Look

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Kenny Goodrich
July 18, 2025

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THE MONEY IDEA💡
4 Underrated Stocks Worth a Look

Welcome, we are 39,193 Money Masters and counting!

Markets may be at new highs, but value still exists for those willing to look beyond the headlines. This week, we’re highlighting four stocks Morningstar believes are trading well below their true worth, plus one bold energy bet. From dependable dividend payers to cutting-edge innovation, each name offers a unique edge that hasn’t yet been fully appreciated by Wall Street.

Let’s dive in.

THE MONEY IDEA💡
4 Underrated Stocks Worth a Look

Industry: Basic Materials / Commodity Chemicals
Current Status: Undervalued; 4-star rating, narrow moat, high uncertainty

  • Massive Dividend – The stock offers an 8.5 percent dividend yield, recently raised and supported by consistent cash flow.

  • Deep Discount – Shares are trading 35 percent below Morningstar’s fair value estimate, despite solid fundamentals.

  • Cost Advantage – Low-cost feedstock access and operational scale help protect margins during commodity downturns.

  • Recession Baked In – Valuation already reflects a full-blown economic slowdown, leaving limited room for further downside.

  • Resilient Free Cash Flow – The business continues to generate strong cash flow even under conservative oil forecasts.

Bottom Line: For investors seeking high income and a margin of safety, LYB is one of the most compelling deep-value plays in the market today.

Industry: Financial Services / Insurance and Conglomerates
Current Status: Undervalued; wide moat, medium uncertainty

  • Conglomerate Reach – Berkshire owns a mix of recession-resilient businesses spanning insurance, energy, transportation, and consumer goods.

  • Succession in Motion – Greg Abel is positioned to take over as CEO, while Warren Buffett remains involved as chairman.

  • Capital Shift Coming – Morningstar expects the company to increasingly return capital to shareholders through buybacks and dividends.

  • Strong Balance Sheet – Over $150 billion in cash gives it rare flexibility in uncertain times.

  • Attractive Entry Point – Shares remain below Morningstar’s $487 fair value estimate, creating long-term upside.

Bottom Line: Berkshire is a reliable anchor stock offering diversification, financial strength, and long-term compounding—all at a discount.

Industry: Energy / Nuclear Technology
Current Status: Speculative; not rated, high uncertainty

  • First Mover – NuScale is leading the charge in small modular reactor development with scalable nuclear energy technology.

  • Clean Energy Tailwind – Growing global focus on decarbonization is driving increased demand for advanced nuclear solutions.

  • Strategic Backing – Partnered with Fluor Corporation, which lends engineering depth and financial support.

  • Investor Momentum – Morningstar raised its outlook following increased attention and valuation gains in the nuclear sector.

  • Execution Risk – The company still faces meaningful challenges as it scales up commercial deployment.

Bottom Line: For investors with a higher risk tolerance, NuScale is a long-term clean energy bet with breakthrough potential.

Industry: Utilities / Regulated Electric and Gas
Current Status: Undervalued; 4-star rating, narrow moat, low uncertainty

  • Rare Utility Discount – One of the few regulated utilities still trading below fair value.

  • Reliable Yield – Dividend yield of 4.6% provides steady income while rates remain high.

  • Capex-Led Growth – Grid modernization and transmission expansion fuel a projected 6% EPS CAGR.

  • Low Risk Profile – Stable, regulated revenues insulate the company from economic shocks.

Bottom Line: Eversource offers conservative exposure to long-term infrastructure growth at a reasonable price.

Need our expert tips? Grab our Money Mastery guides today.

QUOTE CORNER📄
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