3 More Good Stocks to Invest In After Earnings

Core Insights - Morning Star identifies three undervalued stocks to invest in after earnings: Fortinet, LPL Financial, and Danaher [1][2] Group 1: Fortinet - Fortinet is a midsize cybersecurity vendor with a wide economic moat due to high customer switching costs and a network effect from its platform approach [3] - Revenue is forecasted to grow at a 14% annual compound growth rate over the next 5 years [3] - The stock is considered cheap, trading well below Morning Star's fair value estimate of $18 [4] Group 2: LPL Financial - LPL Financial is the largest independent broker-dealer in the US, rated with a wide economic moat due to switching costs and cost advantages over smaller competitors [5] - The recent acquisition of Commonwealth Financial Network is expected to enhance LPL's ability to attract breakaway wirehouse advisors [5] - Revenue is projected to grow at a 12.9% annual rate over the next 10 years, with the stock undervalued compared to Morning Star's $54 fair value estimate [6] Group 3: Danaher - Danaher is a large-cap global life sciences and diagnostics company with a wide economic moat derived from intangible assets and switching costs [6] - The company has become a top five player in the life sciences and diagnostic tool markets through acquisitions [7] - Although profit growth has been strained this year, it is expected to accelerate in 2026, with organic revenue projected to rise 6% compounded annually through 2029 [7] - Morning Star values Danaher stock at $270, with shares trading well below this estimate [8]