Morningstar Highlights 5 Undervalued Small-Cap Stocks Amid Market Opportunities
Morningstar's latest analysis identifies five small-cap stocks trading at significant discounts, offering potential value for investors. Mattel (MAT) leads the list with a 27% discount to fair value, bolstered by strong brand power and anticipated holiday sales. The toy maker's current valuation at 11 times guidance presents an attractive entry point.
Scotts Miracle-Gro (SMG) follows, trading at a 30% discount with a 4.3% yield. Despite recent competitive concerns, the lawn and garden company maintains steady fundamentals and improving margins. Sealed Air (SEE) rounds out the top three, offering a 35% discount in the packaging sector with stabilizing demand and customer retention advantages.