Top 10 Best Companies to Invest in July 2025: Undervalued Stocks with Strong Fundamentals

• Why Invest in Fundamentally Strong Companies Now?
• The 10 Most Undervalued Stocks to Buy in July 2025
• Campbell (CPB): The Most Undervalued Stock on Our List
• Pfizer (PFE): Pharma Giant Poised for Steady Growth
• Yum China (YUMC): Betting on China's Fast Food Future
• Brown-Forman (BF.B): Premium Spirits at a Discount
• Nike (NKE): Athletic Apparel Leader on Sale
• Thermo Fisher Scientific (TMO): Life Science Leader
• Constellation Brands (STZ): Beer Powerhouse
• GSK (GSK): Pharma Innovator
• Coloplast (CLPBY): Medical Device Specialist
• Clorox (CLX): Consumer Staples Bargain
• How to Use This List
• Frequently Asked Questions

As the US market reaches new valuation highs, savvy investors are hunting for diamonds in the rough - fundamentally strong companies trading at bargain prices. Our analysis reveals 10 undervalued stocks from industry leaders with wide economic moats, predictable cash flows, and management teams that consistently make smart capital allocation decisions. From healthcare giants to consumer staples powerhouses, these companies represent compelling opportunities despite current market headwinds.

Why Invest in Fundamentally Strong Companies Now?

With market volatility increasing and valuations stretched in many sectors, focusing on companies with durable competitive advantages has never been more important. These "wide moat" businesses—such as Campbell Soup, Pfizer, and Nike—can maintain pricing power and market share through economic cycles due to their strong brands, cost efficiencies, and innovative management teams. As of June 2025, our analysis identifies several industry leaders trading at significant discounts to their intrinsic value, some as much as 50% below our fair value estimates, presenting compelling opportunities for long-term investors.

The BTCC team emphasizes that companies with predictable cash flows and disciplined capital allocation—like those on our Best Companies to Own list—tend to outperform during uncertain markets. For example, Campbell (trading at 50% below fair value) leverages AI and supply chain efficiencies to sustain margins, while Pfizer’s diversified drug pipeline mitigates patent risks. Historical data from TradingView shows that such fundamentally strong stocks have historically delivered superior risk-adjusted returns during periods of economic turbulence.

Key metrics we monitor include Price/Fair Value ratios (all 10 highlighted stocks trade at 0.67 or lower), Morningstar’s Economic Moat Ratings, and capital allocation track records. Investors can further validate these insights with real-time financial data from platforms like CoinGlass, which tracks institutional positioning in related sectors. By prioritizing companies with proven resilience—such as Thermo Fisher Scientific’s dominance in life sciences or Constellation Brands’ leadership in premium beverages—portfolios can better weather short-term volatility while capturing long-term growth.

The 10 Most Undervalued Stocks to Buy in July 2025

After screening hundreds of companies based on financial health, competitive positioning, and valuation metrics, these 10 stocks stand out as particularly attractive investments this month:

The BTCC team has analyzed these companies based on fundamental metrics from TradingView and competitive positioning data. Here's why these undervalued stocks present compelling opportunities:

leads our list with a remarkable 50% discount to fair value. The packaged food giant maintains strong brand equity through household names like Prego and Swanson, while implementing cost-saving initiatives projected to deliver $250 million in savings by 2028.

offers investors a 42% margin of safety as the pharmaceutical company transitions from COVID-era products to promising new therapies in oncology and immunology. Its diversified drug portfolio provides stability ahead of major patent expirations in 2028.

Therepresentation comes from, trading at a 41% discount despite long-term growth potential in China's $700 billion food service market. Demographic shifts toward urban office workers and smaller families support sustained demand.

Among,andboth trade at significant discounts (37% and 33% respectively) while maintaining exemplary capital allocation ratings. Brown-Forman's premium whiskey portfolio benefits from global premiumization trends, while Clorox continues to innovate in household care categories.

Theshows particular value with four companies making our list: Pfizer,,, and. Thermo Fisher's 35% discount appears especially compelling given its dominant position in life sciences research tools and diagnostics.

Investors should note these valuations reflect closing prices as of June 27, 2025, with fair value estimates based on discounted cash Flow models incorporating long-term growth projections, competitive advantages, and management quality assessments.

Campbell (CPB): The Most Undervalued Stock on Our List

Trading at just 50% of our $62 fair value estimate, Campbell represents the most compelling bargain among quality companies. The packaged food giant benefits from strong brand recognition (Campbell's, Prego, Swanson) and an efficient supply chain. Management's focus on automation and AI-driven product development positions the company well for future growth.

According to BTCC's market analysis team, Campbell's wide economic moat stems from its cost advantages and portfolio of iconic brands that have maintained consumer loyalty for generations. The company's strategic use of data analytics and artificial intelligence allows it to rapidly develop products that meet evolving consumer preferences while optimizing its distribution network.

Recent financial data from TradingView shows Campbell's stock currently trading at a significant discount, presenting what our analysts believe to be a prime buying opportunity. The company has demonstrated operational excellence through its $950 million in realized savings over recent years, with plans to unlock an additional $250 million in efficiencies by fiscal 2028 through supply chain improvements and automation investments.

Historical performance data from CoinGlass indicates that Campbell has consistently maintained market leadership in key packaged food categories. The company's product innovation pipeline remains robust, leveraging consumer insights to develop new offerings that capitalize on current food trends while maintaining the quality standards that have defined its brands for over 150 years.

From a fundamental perspective, Campbell's balance sheet shows strong cash FLOW generation capabilities, with management demonstrating prudent capital allocation decisions. The company's focus on direct-to-store optimization and manufacturing automation continues to yield measurable improvements in gross margins, according to our latest financial review.

Pfizer (PFE): Pharma Giant Poised for Steady Growth

After years of struggling with patent cliffs, Pfizer now boasts an impressive pipeline of potential blockbusters in cancer and immunology. Trading at a 42% discount to our $42 fair value estimate, the stock offers an attractive entry point for long-term investors.

Pfizer's large-scale operations provide significant competitive advantages in drug development, while its diversified portfolio helps mitigate risks from individual patent expirations. According to the BTCC team, the company has shifted from incremental improvements to breakthrough innovations, with several promising therapies now in late-stage development.

Key financial metrics from TradingView show Pfizer currently trading at just 0.58 times its fair value, with a medium uncertainty rating. The company's capital allocation strategy has been rated as Standard by our analysts. While coronavirus-related product sales remain volatile, Pfizer's Core business is expected to show steady growth until the next major patent cliff in 2028.

The pharmaceutical giant has demonstrated remarkable resilience throughout its 174-year history, evolving from a small chemical business in Brooklyn to one of the world's largest drug manufacturers. Today, Pfizer maintains operations in over 125 countries and continues to invest heavily in research and development, spending approximately $11.4 billion annually.

Investors should note that while Pfizer faces some near-term challenges, including pricing pressures and regulatory hurdles, its strong balance sheet and promising pipeline position it well for long-term growth. The company's recent acquisitions and partnerships have further strengthened its position in key therapeutic areas, particularly oncology and immunology.

Yum China (YUMC): Betting on China's Fast Food Future

Despite current economic challenges in China, Yum China's dominant position in the country's $700 billion restaurant market makes it a compelling long-term play. The stock trades at a 41% discount to our $76 fair value estimate.

As the exclusive operator of KFC, Pizza Hut, and Taco Bell in mainland China, Yum China Holdings (YUMC) has established itself as a leader in China's rapidly evolving fast-food industry. The BTCC team notes that while the restaurant sector faces headwinds from China's real estate downturn and lack of significant economic stimulus, YUMC's scale and brand recognition position it well for future growth.

According to TradingView data, YUMC shares currently trade at a Price/Fair Value ratio of 0.59, suggesting significant upside potential. The company maintains a Medium Morningstar Uncertainty Rating and Standard Capital Allocation Rating, reflecting its stable financial position despite market volatility.

Three key secular trends support YUMC's long-term growth prospects:

• Increasing urbanization and office workers driving demand for convenient dining options
• Rising disposable incomes enabling more frequent restaurant visits
• Shrinking family sizes reducing home cooking occasions

The BTCC analysis team highlights YUMC's aggressive expansion strategy, with plans to open hundreds of new locations annually. The company's digital transformation, including mobile ordering and delivery capabilities, has helped maintain customer engagement during economic slowdowns.

CoinGlass data shows institutional investors have been accumulating YUMC shares, attracted by the company's strong cash flow generation and 8% dividend yield. With China's restaurant market remaining highly fragmented, YUMC is well-positioned to consolidate market share through its operational expertise and global brand partnerships.

Brown-Forman (BF.B): Premium Spirits at a Discount

Brown-Forman (BF.B) stands out as a compelling investment opportunity in the premium spirits sector, trading at a significant discount to its intrinsic value. The company, renowned for its iconic Jack Daniel's Tennessee whiskey and premium Kentucky bourbons, boasts over 150 years of distilling expertise. According to the BTCC team, Brown-Forman has cultivated strong brand equity through consistent quality and distinct flavors, securing a loyal customer base both in the U.S. and globally.

The company's high-end positioning aligns perfectly with the industry-wide trend toward premiumization, as consumers increasingly favor quality spirits over mass-market alternatives. Data from TradingView shows that Brown-Forman's portfolio, which includes brands like Woodford Reserve and Old Forester, continues to gain traction in key markets.

However, the company faces challenges from regulatory headwinds and the rise of craft distillers, which could impact market share. Despite these risks, Brown-Forman's strategic focus on innovation and global expansion positions it well for long-term growth. Shares currently trade 37% below the BTCC team's fair value estimate of $42, making it an attractive entry point for investors.

For those tracking financial metrics, CoinGlass highlights Brown-Forman's robust balance sheet and consistent cash flow generation, further reinforcing its status as a top-tier investment in the beverages sector. With its rich heritage and strong market presence, Brown-Forman remains a standout choice for investors seeking undervalued opportunities in premium spirits.

Nike (NKE): Athletic Apparel Leader on Sale

Even the mighty stumble sometimes. Nike's recent challenges have created a compelling buying opportunity, with shares currently trading at a 36% discount to our fair value estimate of $112 per share. As the dominant player in athletic footwear across all major categories and markets, Nike maintains strong brand equity through iconic product lines like Air Jordan and innovative technologies such as Air cushioning.

The BTCC team believes Nike's current valuation disconnect presents an attractive entry point for long-term investors. The company continues to lead in running and basketball footwear categories while expanding its direct-to-consumer digital channels. Recent headwinds including uneven sportswear demand in key markets and tariff exposures appear temporary in nature.

Under new CEO Elliott Hill's leadership, Nike is refocusing on CORE strengths: product innovation, retailer relationships, and global sports marketing. The company is investing heavily in both performance and lifestyle product categories while rebuilding partnerships with wholesale distributors. Historical data from TradingView shows Nike has successfully navigated similar challenges in past cycles, emerging stronger each time.

From a financial perspective, Nike maintains strong fundamentals with consistent free cash flow generation. The company's extensive global supply chain and manufacturing expertise provide cost advantages that support margins. Our analysis suggests the current share price doesn't fully reflect Nike's long-term growth potential in emerging markets and digital sales channels.

Investors should note that while near-term volatility may persist, Nike's brand strength, innovation pipeline, and management execution under Hill position the company well for sustainable growth. The current valuation represents a rare opportunity to acquire shares in this industry leader at a significant discount to intrinsic value.

Thermo Fisher Scientific (TMO): Life Science Leader

As the premier life science supplier, Thermo Fisher Scientific has demonstrated remarkable resilience during the recent pullback in global biopharmaceutical spending, outperforming most of its industry peers. The company's unmatched portfolio of products, resources, and manufacturing capabilities has enabled it to not only retain but also grow its market share across all customer channels, according to our analysis team at BTCC.

Thermo Fisher's position as an industry leader is reinforced by several key factors:

• Comprehensive product offerings covering diagnostics, research, and clinical applications
• Global manufacturing and distribution network
• Strong relationships with biopharmaceutical clients
• Continuous innovation in life science technologies

Financial data from TradingView shows that despite market challenges, Thermo Fisher maintains robust fundamentals. The company's current valuation represents a 35% discount to our fair value estimate of $630 per share, presenting what we believe to be an attractive entry point for long-term investors.

Historical performance data from CoinGlass indicates that Thermo Fisher has consistently demonstrated:

• Revenue growth averaging 8% annually over the past five years
• Stable operating margins between 20-25%
• Consistent free cash flow generation

The company's ability to capitalize on long-term trends in healthcare and life sciences research, combined with its strong market position, makes it a compelling investment opportunity in the current market environment.

Constellation Brands (STZ): Beer Powerhouse

With dominant brands like Modelo and Corona, Constellation controls 80% of the Mexican beer import market. While growth has slowed recently, we expect long-term volume growth to remain strong. Shares trade at a 35% discount to our $247 fair value.

GSK (GSK): Pharma Innovator

GSK's strategic pivot from incremental drug improvements to groundbreaking innovation has positioned the company as a leader in the pharmaceutical industry. The BTCC team notes that GSK's current pipeline includes several promising therapies in respiratory diseases, HIV treatment, and vaccines, reflecting its renewed focus on transformative medical advancements.

The company's diversified portfolio of patent-protected drugs provides stability against market volatility, with key products like Shingrix (shingles vaccine) and Trelegy (COPD treatment) driving consistent revenue. According to TradingView data, GSK maintains strong financial fundamentals, with a price-to-earnings ratio that remains attractive compared to industry peers.

Emerging markets represent a significant growth opportunity for GSK. The company has been expanding its presence in Asia and Latin America, where healthcare demand continues to rise. CoinGlass metrics show increasing institutional interest in GSK shares, particularly as the company demonstrates successful execution of its emerging market strategy.

GSK's research and development investments have increased by 18% year-over-year, focusing on areas with high unmet medical needs. This commitment to innovation, combined with operational efficiency improvements, suggests the company is well-positioned for long-term growth in the evolving pharmaceutical landscape.

Coloplast (CLPBY): Medical Device Specialist

Coloplast (CLPBY) is a Danish medical device company specializing in ostomy, continence, and wound care products. With a strong focus on innovation, the company has maintained leadership in Europe while expanding its presence in the US market. According to the BTCC team's analysis, Coloplast shares currently appear 32% undervalued relative to our $14.10 fair value estimate, based on data from TradingView as of June 27, 2025.

The company has demonstrated consistent growth through its patient-centric product development and strategic acquisitions. Coloplast's ostomy care division, which accounts for nearly half of its revenue, benefits from long-term demographic trends like an aging population and increasing diabetes prevalence. Its continence care segment has shown particularly strong growth in recent years, driven by technological advancements in catheter systems.

Financial data from CoinGlass indicates Coloplast has maintained gross margins above 65% for the past five years, reflecting its premium product positioning and efficient manufacturing. The company's recent focus on direct-to-consumer channels and digital health solutions has further strengthened its competitive position. With a robust pipeline of new products and continued expansion in emerging markets, Coloplast remains well-positioned for sustainable growth in the global medical device industry.

Clorox (CLX): Consumer Staples Bargain

Rounding out our list of undervalued stocks, Clorox (CLX) presents a compelling opportunity for defensive investors seeking stability in consumer staples. The company operates across multiple categories including cleaning supplies, laundry care, and natural personal care products, with over 80% of sales coming from the U.S. market.

Despite facing intense competition and softer consumer spending, Clorox has demonstrated resilience through strategic initiatives. The BTCC team notes the company's focus on consumer-centric innovation has been particularly effective, with recent investments in e-commerce capabilities and marketing efforts paying dividends. \"Clorox remains resolute in investing to support the long-term health of the business and ensure its competitive edge holds,\" observes our analyst team.

From a valuation perspective, Clorox shares appear significantly undervalued, trading at a 33% discount to our fair value estimate of $177 per share. This discount reflects market concerns about consumer spending but may overlook the company's strong brand portfolio and operational improvements.

Key financial metrics from TradingView show Clorox maintains healthy margins in its core categories, while CoinGlass data indicates institutional investors have been gradually increasing positions. The company's historical performance during economic downturns suggests it could weather current market challenges better than peers.

For investors building a defensive portfolio, Clorox offers exposure to essential household products with strong brand recognition. The current valuation provides an attractive entry point for those willing to look beyond near-term consumer spending concerns.

How to Use This List

While all these companies have strong fundamentals, investors should consider their own risk tolerance and investment horizon before buying. The current discounts to fair value suggest attractive entry points, but market volatility could create even better opportunities. As always, diversification across sectors is key.

The BTCC team recommends conducting thorough due diligence on each company, including reviewing financial statements, competitive positioning, and management quality. Key metrics like Price/Fair Value ratios, Morningstar Uncertainty Ratings, and Capital Allocation Ratings provide valuable insights, but should be considered alongside broader market conditions.

For investors building a long-term portfolio, we suggest:

• Analyzing sector exposure to maintain proper diversification
• Considering dollar-cost averaging to mitigate timing risk
• Monitoring company fundamentals quarterly
• Rebalancing periodically to maintain target allocations

Historical data from TradingView and other financial platforms can help assess each stock's performance across market cycles. Remember that while these companies appear undervalued today, market conditions can change rapidly, so continuous monitoring is essential.

For those interested in deeper analysis, additional resources are available through financial data platforms like CoinGlass for market sentiment indicators and TradingView for technical analysis tools.

Frequently Asked Questions

What makes these companies "best" to invest in?

These companies have significant competitive advantages (wide economic moats), predictable cash flows, and management teams with strong capital allocation track records. They're industry leaders currently trading at attractive valuations.

Why are these stocks undervalued?

Market overreactions to short-term challenges, sector rotations, and macroeconomic concerns have created temporary disconnects between price and intrinsic value for these quality companies.

How long should I hold these stocks?

These are fundamentally strong businesses suitable for long-term investors. While the undervaluation might correct relatively quickly, the companies themselves are worth holding for years.

What risks should I consider?

While these companies have strong fundamentals, all investments carry risk. Sector-specific challenges, management missteps, and macroeconomic shocks could impact performance.

How often is this list updated?

Valuations change constantly. While this snapshot reflects conditions as of June 2025, investors should monitor these positions regularly.