10 Undervalued Growth Stocks Analysts Say Could Deliver Long-Term Gains
Despite the strong rally in technology and artificial intelligence stocks in 2025, some high-quality growth companies are now trading at attractive prices, creating opportunities for long-term investors.
According to analysts at Morningstar, a number of growth stocks have become undervalued after the recent sell-off in tech stocks, even though their long-term fundamentals remain strong.
Here is a clear breakdown of the report and the 10 growth stocks analysts believe investors should consider for the long term.
Why Growth Stocks Are Back on Investors’ Radar
Growth stocks surged in 2025, largely driven by the rapid expansion of artificial intelligence technologies.
However, towards the end of the year:
• Technology stocks experienced a sell-off
• Investors rotated funds into value stocks
• Some growth companies became undervalued
Despite this shift, growth stocks still delivered solid returns:
• The Morningstar US Growth Index gained 20.29% in the last year
• The Morningstar US Value Index rose 17.18%
Analysts believe this pullback has created buying opportunities in high-quality growth companies.
10 Best Growth Stocks for Long-Term Investors
Morningstar screened companies with:
• Strong competitive advantages (economic moat)
• Predictable cash flows
• Solid management teams
• Attractive valuations compared to fair value
Here are the 10 growth stocks that made the list:
Coloplast (CLPBY)
A global medical supplies company specializing in:
• ostomy care
• continence care
• urology products
The company has built strong market leadership in Europe and is expanding into the United States. Analysts estimate the stock is about 41% undervalued.
SAP (SAP)
One of the world’s largest enterprise software companies.
SAP is benefiting from the transition to cloud-based software services, particularly with products like:
• RISE with SAP
• GROW with SAP
These platforms help businesses manage finance, operations, procurement, and data.
CoStar Group (CSGP)
A major provider of commercial real estate data and digital property marketplaces.
Its platforms include:
• Apartments.com
• LoopNet
• Homes.com
Its proprietary real estate database, built over 35 years, gives it a strong competitive advantage.
Experian (EXPGY)
One of the world’s largest credit bureaus.
The company provides credit data used by lenders to assess borrowers and is expanding into:
• fintech services
• identity verification
• emerging markets such as Brazil and Africa.
Equifax (EFX)
Another major credit bureau operating alongside Experian.
Equifax has expanded into:
• income verification services
• employment data platforms
• fraud detection solutions
These new segments are driving growth beyond traditional credit reporting.
Amphenol (APH)
A global manufacturer of:
• connectors
• sensors
• electronic interconnect systems
Its products are used in telecommunications, aerospace, automotive systems, and data centers.
Artificial intelligence infrastructure is expected to become a major growth driver for the company.
Ferrari (RACE)
The iconic Italian luxury car manufacturer.
Ferrari maintains high profit margins by:
• producing limited vehicles to maintain exclusivity
• expanding its luxury product lineup
• offering highly customized vehicles
The brand’s prestige and scarcity create strong pricing power.
Taiwan Semiconductor Manufacturing Company (TSMC)
The largest semiconductor manufacturer in the world, controlling about 70% of the global chip foundry market.
TSMC produces chips used in:
• smartphones
• artificial intelligence
• high-performance computing
• Internet of Things devices.
Demand for advanced chips could drive growth for decades.
MSCI Inc (MSCI)
A global provider of financial data, stock market indexes, and investment analytics.
Its indexes are used by:
• asset managers
• ETFs
• institutional investors
Which global growth stock would you hold for the next 10 years if you had to choose just one?
Despite the strong rally in technology and artificial intelligence stocks in 2025, some high-quality growth companies are now trading at attractive prices, creating opportunities for long-term investors.
According to analysts at Morningstar, a number of growth stocks have become undervalued after the recent sell-off in tech stocks, even though their long-term fundamentals remain strong.
Here is a clear breakdown of the report and the 10 growth stocks analysts believe investors should consider for the long term.
Why Growth Stocks Are Back on Investors’ Radar
Growth stocks surged in 2025, largely driven by the rapid expansion of artificial intelligence technologies.
However, towards the end of the year:
• Technology stocks experienced a sell-off
• Investors rotated funds into value stocks
• Some growth companies became undervalued
Despite this shift, growth stocks still delivered solid returns:
• The Morningstar US Growth Index gained 20.29% in the last year
• The Morningstar US Value Index rose 17.18%
Analysts believe this pullback has created buying opportunities in high-quality growth companies.
10 Best Growth Stocks for Long-Term Investors
Morningstar screened companies with:
• Strong competitive advantages (economic moat)
• Predictable cash flows
• Solid management teams
• Attractive valuations compared to fair value
Here are the 10 growth stocks that made the list:
Coloplast (CLPBY)A global medical supplies company specializing in:
• ostomy care
• continence care
• urology products
The company has built strong market leadership in Europe and is expanding into the United States. Analysts estimate the stock is about 41% undervalued.
SAP (SAP)One of the world’s largest enterprise software companies.
SAP is benefiting from the transition to cloud-based software services, particularly with products like:
• RISE with SAP
• GROW with SAP
These platforms help businesses manage finance, operations, procurement, and data.
CoStar Group (CSGP)A major provider of commercial real estate data and digital property marketplaces.
Its platforms include:
• Apartments.com
• LoopNet
• Homes.com
Its proprietary real estate database, built over 35 years, gives it a strong competitive advantage.
Experian (EXPGY)One of the world’s largest credit bureaus.
The company provides credit data used by lenders to assess borrowers and is expanding into:
• fintech services
• identity verification
• emerging markets such as Brazil and Africa.
Equifax (EFX)Another major credit bureau operating alongside Experian.
Equifax has expanded into:
• income verification services
• employment data platforms
• fraud detection solutions
These new segments are driving growth beyond traditional credit reporting.
Amphenol (APH)A global manufacturer of:
• connectors
• sensors
• electronic interconnect systems
Its products are used in telecommunications, aerospace, automotive systems, and data centers.
Artificial intelligence infrastructure is expected to become a major growth driver for the company.
Ferrari (RACE)The iconic Italian luxury car manufacturer.
Ferrari maintains high profit margins by:
• producing limited vehicles to maintain exclusivity
• expanding its luxury product lineup
• offering highly customized vehicles
The brand’s prestige and scarcity create strong pricing power.
Taiwan Semiconductor Manufacturing Company (TSMC)The largest semiconductor manufacturer in the world, controlling about 70% of the global chip foundry market.
TSMC produces chips used in:
• smartphones
• artificial intelligence
• high-performance computing
• Internet of Things devices.
Demand for advanced chips could drive growth for decades.
MSCI Inc (MSCI)A global provider of financial data, stock market indexes, and investment analytics.
Its indexes are used by:
• asset managers
• ETFs
• institutional investors
Which global growth stock would you hold for the next 10 years if you had to choose just one?
