10 Best Growth Stocks to Buy for the Long Term

Growth stocks benefited from the exceptionally rapid development and buildout of artificial intelligence in 2025. But as momentum faded at the end of the year, and anxiety about AI disruption took hold, investors shifted to better opportunities in the value category, creating some buying opportunities among growth stocks.

“Following the selloff in technology stocks, which are overweight in the growth category, growth stocks have become increasingly undervalued,“ says Morningstar Chief US Market Strategist Dave Sekera in his March stock market outlook.

Over the past 12 months, the Morningstar US Growth Index rose 20.29%, while the Morningstar US Value Index gained 17.18%.

Our best growth stocks to buy for the long term share a few qualities:

• They land in the growth portion of the Morningstar Style Box.
• The stocks are from companies included on Morningstar’s list of the Best Companies to Own for 2026. Companies on this list have wide Morningstar Economic Moat Ratings and predictable cash flows, and they are run by management teams that make smart capital-allocation decisions.
• They look reasonably priced, which means they’re trading below or near Morningstar’s fair value estimates.

10 Best Growth Stocks to Buy for the Long Term

The 10 most undervalued growth stocks from Morningstar’s Best Companies to Own list as of March 9, 2026, were:

1. Coloplast CLPBY
2. SAP SAP
3. CoStar Group CSGP
4. Experian EXPGY
5. Equifax EFX
6. Amphenol APH
7. Ferrari RACE
8. TSMC TSM
9. MSCI MSCI
10. BAE Systems BAESY

To come up with our list of the best growth stocks to buy for the long term, we screened for:

• Stocks that land in the growth portion of the Morningstar Style Box.
• Stocks from companies included on Morningstar’s list of the Best Companies to Own. Companies on this list have wide

  Morningstar Economic Moat Ratings

  and predictable cash flows, and they are run by management teams that make smart capital-allocation decisions.

• Stocks that are undervalued, as measured by our price/fair value metric.

Here’s a little more about each of these growth stocks for the long term, including commentary from the Morningstar analysts who cover each company. All data is as of March 9, 2026.

Coloplast

• Morningstar Price/Fair Value: 0.59
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Medical Instruments and Supplies

Medical supplies company Coloplast is the most affordable stock on our list of the best growth stocks to buy. Coloplast is a leading global competitor in ostomy management and continence care. The stock is trading 41% below our fair value estimate of $12.20 per share.

Based in Denmark, Coloplast is a leader in global ostomy and continence care. The firm has made inroads into the concentrated urology and fragmented woundcare markets, but it remains a peripheral player there. In contrast, Coloplast has a long record of consistent and meaningful innovation in ostomy and continence care that has led to a dominant position in Europe and steady growth in the US. Since 2008, the firm has done an admirable job of trimming its cost structure as it focused on profitable growth. After shifting the majority of its production to Hungary, China, and Costa Rica, Coloplast now enjoys a gross margin that beats that of rival Convatec by more than 1,150 basis points. Currently, Coloplast is altering its emphasis to enhance growth by entering new geographies, with an emphasis on the US.

We’ve long been impressed with the firm’s ability to provide thoughtful, user-friendly improvements to its ostomy and intermittent catheters, which have won over end users. Most recently, Coloplast has upped its game with the incorporation of more sophisticated technology in its supplies and corresponding investment in clinical studies to demonstrate the value of these improvements. For example, new intermittent catheter Luja empties the bladder more fully to reduce the ever-present risk of urinary tract infections.

We are less keen on Coloplast’s woundcare segment, where competitive product launches abound. Coloplast’s woundcare portfolio had historically centered on low-tech foam, leaving the firm more vulnerable as advanced woundcare has moved toward hydrofiber and antibacterial products. Further, as with all competitors in this market, Coloplast faces relatively low switching costs for customers. Additionally, the majority of woundcare products are sold to providers (versus directly to patients themselves), which means there is greater pricing pressure from group purchasing organizations and government-sponsored tenders. Even Coloplast’s acquisition of innovative Kerecis fish skin has become caught up in Medicare’s efforts to rein in reimbursement for skin substitutes.

Read more about Coloplast here.

SAP

• Morningstar Price/Fair Value: 0.63
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Software-Application

Founded in Germany in 1972 by former IBM employees, SAP is the world’s largest provider of enterprise application software. The stock is trading at a 37% discount to our fair value estimate of $317 per share.

SAP is the world’s largest provider of enterprise application software and global market leader in enterprise resource planning software. The company earns revenue by selling subscriptions for its various cloud-based software-as-a-service products, as well as licenses and maintenance fees for on-premises software, which are now being largely phased out. Besides its core ERP products, such as S/4HANA, SAP offers well-known back-office software products such as Concur for travel and expense management and Ariba for procurement.

The company was late to the cloud for ERP software but now offers two compelling products: RISE with SAP, which is the private-cloud edition designed for SAP’s large enterprise customers that are transitioning from their SAP on-premises ERP (ECC) to SAP S/4HANA; and GROW with SAP, which is the public cloud edition that is designed for midmarket companies with less complex requirements. We think GROW with SAP fills an important void in SAP’s product offering, as previously SAP’s ERP software was often unattractive to smaller customers, given the implementation costs were just too high. With the launch of these new products, cloud revenue is growing swiftly, and SAP is capturing many new midmarket customers.

SAP is following a land and expand strategy, which is common in the enterprise software market. RISE with SAP and GROW with SAP are the land products after which the company then upsells and cross-sells more SAP products to these customers, which is much easier in a cloud-based model. The company has yet to release its latest long-term ambitions, but expects revenue growth to accelerate at least through 2027, along with rising margins as the cloud business reaches efficient scale.

Read more about SAP here.

CoStar Group

• Morningstar Price/Fair Value: 0.64
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Real Estate Services

Next on our list of the best growth stocks to buy is CoStar Group. CoStar Group is a leading provider of commercial real estate data and marketplace listing platforms. The stock is trading at a 36% discount to our fair value estimate of $76 per share.

CoStar Group’s business is built around a proprietary database of commercial real estate information that the company has developed and enhanced for more than 35 years. This database is by far the best in the industry and forms the bedrock of most of the products offered by the firm. The firm’s proprietary data powers its analytic and information services and provides content for most of its online marketplaces. The company has six main business lines: multifamily, CoStar Suite, LoopNet, other marketplaces, information services, and residential, in order of revenue contribution.

Addressing these in sequence, the multifamily segment contributes about 35% of revenue and consists of various apartment listing platforms such as Apartments.com. We expect robust revenue growth in this segment on the back of higher penetration rates, increased pricing power, and incremental service offerings.

CoStar Suite, an integrated suite of online service offerings that includes information about space available for lease or sale, comparable sales and leasing information, tenant and ownership information, internet marketing services, analytical capabilities, information about industry professionals, and industry news, also comprises about 35% of revenue. We expect healthy future growth in this segment from above-inflation price increases, upselling opportunities, growth in its user base, and international expansion.

The long tail of CoStar’s other business includes LoopNet (around 10% of sales) a leading online marketplace for CRE listings, other revenue (also around 8%), including subsidiary marketplaces like Ten-X, BizBuySell, and Lands of America, residential (7%), a recently entered marketplace business spearheaded by Homes.com and Homesnap, and information services (5%).

We appreciate the firm’s strong competitive positioning and believe that its efforts to diversify revenue streams, with moves like its Homes.com acquisition providing interesting optionality, extending the firm’s prospective growth runway. Still, the residential foray looks beyond the firm’s core competency and has proven an expensive and value-dilutive proposition to date.

Read more about CoStar Group here.

Experian

• Morningstar Price/Fair Value: 0.69
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Consulting Services

Experian is one of the leading credit bureaus in North America and the UK, providing the consumer with information that is the basis for making lending decisions. The stock is trading at a 31% discount to our fair value estimate of $55 per share.

Along with Equifax and TransUnion, Experian is one of the Big Three credit bureaus. Experian’s US core credit bureau business is relatively mature and, as a result, the company has been expanding through adjacent products and in emerging markets.

Experian continues to focus on geographic diversification. In fiscal 2025, Experian generated about 67% of its revenue from North America, a touch less than TransUnion and Equifax. Experian has developed a dominant position in Brazil, and we think the growth of middle-class populations in emerging markets and favorable regulatory changes (such as the use of more data types) will drive long-term growth. We see some long-term opportunities in Asia, but the payoff is a bit more uncertain, and execution has been lackluster. The story in the emerging markets is not seamless, and the firm has faced currency and macroeconomic headwinds.

Unlike peers TransUnion and Equifax, Experian has generally preferred to build out its own financial technology offerings rather than partner with other firms. An example is CreditMatch, which is similar to Intuit’s Credit Karma. Experian Boost, which takes consumer-permissioned data to try to improve consumer credit scores, has been a major focus for the company, and user growth has been strong.

Experian’s management continues to pursue both organic and inorganic opportunities. Like its peers, Experian is pursuing bolt-on deals in various areas. In November 2020, Experian acquired Tapad, a marketing data company, for $280 million. Other acquisitions include Auto I.D. (US automotive lending services), Compuscan (geographic expansion in Africa credit bureau market), and Illion (geographic expansion in Australia). Experian has also made some progress in the income and employment verification space, which peer Equifax leads. We believe these deals make strategic sense so long as management maintains price discipline.

Read more about Experian here.

Equifax

• Morningstar Price/Fair Value: 0.76
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Consulting Services

Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the US. This cheap stock looks 24% undervalued and has a fair value estimate of $270 per share.

Along with TransUnion and Experian, Equifax is one of the Big Three US credit bureaus. Given the fixed costs inherent in a data-intensive business, Equifax has been able to enjoy strong operating leverage from incremental revenue. As the US credit bureau market is relatively mature, the company has been adding new capabilities and expanding its geographic footprint organically and through acquisitions. As an example of its bolt-on acquisition strategy, Equifax purchased e-commerce fraud prevention platform Kount for $640 million in 2021. Outside the US, Equifax has international operations in both developed and developing countries. The acquisition of Boa Vista in 2023 gave Equifax entry into Brazil.

Equifax’s star in recent years has been its workforce solutions business, which is now its largest segment. Workforce solutions includes income verification, primarily for mortgages. We expect Equifax’s competitive position to persist as the large amount of existing records and the difficulty of convincing employers to share employee information would be too tough for new entrants to overcome. We expect Equifax to focus on expanding use cases of income verification beyond mortgages to autos, cards, government services, and employment screening. Workforce solutions also includes employer services, which consist of employee onboarding solutions, I-9 management, tax form services, and unemployment claims processing. Growth by acquisition in workforce solutions has also been a focus, most notably with its $1.8 billion deal to buy Appriss Insights.

Equifax’s reputation took a beating after a well-publicized data breach in 2017. This wasn’t the first time Equifax had suffered a data breach; however, the depth and breadth of the breach created ire among the public and showed that the company wasn’t prepared to handle customer data securely. Since then, Equifax has invested heavily in cybersecurity and incurred significant legal and product liability costs. In our view, Equifax has largely put the episode behind it.

Read more about Equifax here.

Amphenol

• Morningstar Price/Fair Value: 0.80
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Electronic Components

Amphenol is a global supplier of connectors, sensors, and interconnect systems. The stock is trading at a 20% discount to our fair value estimate of $170 per share.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. It has numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows Amphenol to expand its top line even in an individual market downturn. We think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

Amphenol provides connectors with high performance and reliability that are specialized for mission-critical applications in harsh environments. As such, we think its customer relationships are very sticky, with customers facing high financial and opportunity costs from switching to another component supplier, as well as the risk of component failure. We believe customers rely on Amphenol as a design partner to supply cutting-edge products and enable new capabilities in end applications. As older products become commoditized, the firm can maintain high prices by introducing new designs for new sockets. As a result of these switching costs and pricing power, we believe Amphenol possesses a wide economic moat.

We expect Amphenol to maintain its diversified end-market structure and expand its technological and geographic breadth through mergers and acquisitions, which have funded about one-third of the firm’s historical top-line growth. We expect artificial intelligence revenue to become the firm’s primary growth driver over the medium term but remain less than half of sales, with excellent placement in server configurations from Nvidia and others. As Amphenol grows, we expect it will maintain its best-in-class operating margins by expanding its decentralized organizational structure. The firm operates through more than 140 general managers who operate with great autonomy to respond to end customers’ needs and manage costs; we think this count will grow as the firm makes acquisitions and expands into new markets.

Read more about Amphenol here.

Ferrari

• Morningstar Price/Fair Value: 0.81
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Auto Manufacturers

Ferrari designs, engineers, and manufactures some of the world’s most expensive luxury cars. The stock is trading at a 19% discount to our fair value estimate of $430 per share.

Ferrari is one of the most recognizable luxury brands globally. A Ferrari symbolizes exclusivity, the equivalent of Formula One driving performance, and Italian flair. Each of these brand pillars is carefully cultivated to maintain Ferrari’s wide-moat brand strength.

Since its IPO in 2015, Ferrari has pursued a horizontal growth strategy. By offering the widest product portfolio among luxury supercar manufacturers, Ferrari has been able to increase total volume while maintaining its air of exclusivity. Total volume has grown 88% over the last decade. However, the number of vehicles sold per model per year on average has remained around 1,000.

Exclusivity is supported by Ferrari’s customer segmentation into future Ferraristis, Ferraristis, and collectors. The first two categories only have access to Ferrari’s higher-volume range models but may still incur a two-year waiting period. Ferrari’s intention is always for demand to exceed supply. Only collectors have access to, or are invited to purchase, the more rare special-edition Icona and supercar models.

A broad portfolio also supports repeat purchases by creating different Ferraris for different driving occasions. Ferrari segments its customer base into pilots, who are looking for a high-performance extreme sports car for challenging roads, and sports car drivers, who seek a more versatile luxury sports car driving experience. The broad product range aims to expand its new customer base, creating the next generation of collectors.

The success of the strategy to broaden its portfolio is only possible because of Ferrari’s reputation for industry-leading innovation. Each model launch has revealed a step change in design, technology, or performance despite a rate of 15 model launches per four-year period starting in 2018. This has included strong adoption of Ferrari’s hybrid launches.

While this strategy created a step change in volume growth over the last five years, we believe growth is now limited by a higher base and Ferrari’s number-one goal of maintaining exclusivity. Personalization, collector car launches, and operational leverage should drive value in the future.

Read more about Ferrari here.

Taiwan Semiconductor Manufacturing

• Morningstar Price/Fair Value: 0.81
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Semiconductors

Taiwan Semiconductor Manufacturing is the world’s largest dedicated chip foundry, with about 70% market share in 2025. This cheap stock looks 19% undervalued and has a fair value estimate of $428 per share.

Taiwan Semiconductor Manufacturing is the world’s largest dedicated contract chip manufacturer, or foundry, with about 70% market share in 2025. It makes integrated circuits for customers based on their proprietary IC designs. TSMC has long benefited from semiconductor firms around the globe transitioning from integrated device manufacturers to fabless designers. Like all foundries, it assumes the costs and capital expenditures of running factories amid a highly cyclical market for its customers. Foundries tend to add excessive capacity during times of burgeoning demand, which can result in underutilization during downturns, which hampers profitability.

The rise of fabless semiconductor firms has supported the growth of foundries, which has, in turn, encouraged increased competition. However, most of these newer competitors are confined to low-end manufacturing due to prohibitive costs and engineering know-how associated with leading-edge technology. To prolong the excess returns enabled by leading-edge process technology, or nodes, TSMC initially focuses on logic products, mostly used on central processing units and mobile chips, then focuses on more cost-conscious applications. This strategy has been successful, illustrated by the fact that the firm is one of the two foundries still possessing leading-edge nodes while dozens of peers lag.

We note two long-term growth factors for TSMC. First, the consolidation of semiconductor firms is expected to create demand for integrated systems made with the most advanced nodes. Second, the organic growth of artificial intelligence, Internet of Things, and high-performance computing applications may last for decades. AI and HPC play a central role in quickly processing human and machine inputs to solve complex problems like autonomous driving and language processing, which accentuates the need for more energy-efficient chips. Cheaper semiconductors have made integrating sensors, controllers, and motors to improve home, office, and factory efficiency possible.

Read more about TSMC here.

MSCI

• Morningstar Price/Fair Value: 0.83
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Mid-Growth
• Morningstar Capital Allocation Rating: Exemplary
• Industry: Financial Data and Stock Exchanges

MSCI has described its mission as enabling investors to build better portfolios for a better world. This cheap stock looks 17% undervalued and has a fair value estimate of $680 per share.

Since going public in 2007, MSCI has emerged as a leader in providing data and software to asset managers and asset owners. Its crown jewel is the index segment, which makes up over 55% of overall revenue and 70% of operating profit. Through early leadership in non-US indexes, MSCI boasts over $18 trillion in benchmarked assets. Because index data is critical to stakeholders that benchmark to MSCI, its index subscriptions have strong retention and pricing power.

Though pressure on ETF expense ratios has weighed on MSCI’s license fee rate (which is roughly 2.4 basis points), the firm has benefited from market appreciation and robust net inflows as investors seek low-cost passive ETFs. Customer concentration is real, as BlackRock makes up almost half of MSCI’s asset-based fees.

In 2019, MSCI signed a 10-year agreement with BlackRock that includes some price concessions, but we believe the 10-year horizon should solidify the relationship between the two firms and note that at the end of 2025, MSCI extended its agreement with BlackRock to 2035 while agreeing to modest pricing concessions. MSCI also earns fees for passive mutual funds and royalty revenue for the trading of MSCI-linked futures and options.

MSCI’s analytics segment (about 20%-25% of revenue) offers software subscriptions for risk and portfolio management analytics. About 10% of the firm’s revenue is from its Sustainability and Climate segment. This business has slowed considerably amid ESG underperformance and US political backlash.

We note these segments have applications to MSCI’s index business, such as the creation of factor and ESG indexes. Just under 10% of the firm’s revenue is private assets. We see the acquisitions of Real Capital Analytics (2021) and Burgiss (2023) as MSCI placing a bet on the growth of private asset investing.

Amidst pressure from ValueAct Capital in 2015, MSCI has been disciplined with operating expenses. Adjusted EBITDA margin has grown from 41% in 2014 to 61% in 2025, with notable expansion in the firm’s analytics segment. Given operating leverage from fixed costs, we expect continued margin expansion, but at a slower pace.

Read more about MSCI here.

BAE Systems

• Morningstar Price/Fair Value: 0.86
• Morningstar Uncertainty Rating: Medium
• Morningstar Style Box: Large Growth
• Morningstar Capital Allocation Rating: Standard
• Industry: Aerospace and Defense

Aerospace and defense company BAE Systems rounds out our list of best growth stocks to buy. BAE Systems is a British global defense, security, and aerospace company and the largest defense contractor in Europe; it is one of six prime contractors to the US Department of Defense. The stock is 14% undervalued relative to our fair value estimate of $140 per share.

Escalating geopolitical tensions are driving a multidecade rearmament cycle. After decades of underspending, Europe is rebuilding sovereign capacity in air, land, naval, and missile ecosystems. BAE Systems sits at the center of this shift through incumbency on multidecade programs.

The UK, along with most NATO countries, is committed to increasing defense spending to 3.5% of gross domestic product by 2035. In Europe, BAE holds leading positions in five of the seven priority capability areas, from the Eurofighter Typhoon jet—core to European air defense and with potential to at least double production—to Hägglunds and Bofors combat vehicles, where capacity expansion is underway and embeds BAE deeply into European ground force modernization and logistics resilience, with strong mid-2030s visibility. Moreover, MBDA, in which BAE holds a 37.5% share, has a EUR 39 billion backlog and is scaling to meet European stockpile rebuilding and modernization requirements

Furthermore, BAE is well aligned with the US Defense Department growth programs, from which it derives 45% of its revenue. In the United States, BAE’s 15% program share on the F-35 Lightning II fighter will support revenue for the next 15-20 years on production alone, while combat vehicle revenue is set to double over the next five years. The company is embedded across missile warning, interceptors, electronic warfare, and maritime modernization. The Golden Dome for America requirements for missile warnings, tracking, command-and-control, and interceptors—validated by wins such as the Resilient Missile Warning & Tracking program and satellite command-and-control system for the Future Operationally Resilient Ground Evolution program—establish decades-long revenue pools in the national security segment. In addition, the US Navy is looking to increase the size of its fleet, which bodes well for BAE’s US ship repair business as ship retirements are delayed and mothballed ships reenter service.

The military collaboration among Australia, the UK, and the US will benefit BAE, as it is the prime contractor in Australia and the UK and has been selected to build Australia’s nuclear submarine fleet.

Read more about BAE Systems here.

How to Find More of the Best Growth Stocks to Buy

Investors who’d like to extend their search for top growth stocks can do the following:

• Investors who’d rather invest in growth stocks through a managed product like an exchange-traded fund or a mutual fund can find ideas to research further in The Best Growth Funds.
• Read Morningstar’s Guide to Stock Investing to learn how our approach to investing can inform your stock-picking process.
• Use the Morningstar Investor screener to build a shortlist of growth stocks to research and watch.