'5 ultra-cheap stocks with the best ROI' - Morningstar

Given that the S&P 500 is up 19% so far this year, this may not be the best time to buy stocks.

But if you want to buy, you can stocks/5-ultracheap-stocks-buy-with-best-return-investment”>consider these five quoted by Morningstar. They had to go through several filters of the firm. Those are:

stocks that have outperformed the Morningstar US Market Index on an annualized basis over the past 10 years.
Companies with an average three-year return on invested capital greater than 20%.
Companies with wide or narrow Morningstar moat ratings. “Broad” means that Morningstar believes the company will have competitive advantages for at least 20 years. “Restricted” means at least 10 years.
stocks trading at least 20% below Morningstar fair value estimates as of Nov. 28.

As for the fearsome five, “while we can't predict whether these companies and stocks will continue to generate high returns on investment, we do expect them to be competitive over the next decade,” Morningstar said.

Here are the winners, starting with the most underrated as of November 28.

technology stalwarts

1. Teradino (TER) – Get a free reportsemiconductor test equipment supplier

Morningstar moat: wide. Morningstar Fair Value Estimate: $147. Wednesday Price Quote: $91.75.

“Teradyne is a major supplier of automated test equipment for semiconductors, with market-leading capabilities spanning the entire range of chips,” wrote Morningstar analyst William Kerr. “It can produce testers for the most advanced semiconductors.”

2. Semiconductor manufacturing in Taiwan (SST) – Get a free reportthe world's largest contract chipmaker

Morningstar moat: wide. Morningstar Fair Value Estimate: $139. Wednesday's quote: $97.80.

TSMC benefits from “the transition of semiconductor companies from embedded device makers to fab-free designers,” wrote Morningstar analyst Phelix Lee.

Another factor driving the company: “the growth of artificial intelligence, the Internet of Things and high-performance computing applications may last for decades,” Lee said.

3. Skyworks Solutions (SWKS) – Get a free reportwireless headphone chip manufacturer

Morningstar moat: narrow. Morningstar fair value estimate $133. Wednesday quote: $100.50.

“Skyworks Solutions is a leading supplier of RF components to smartphone manufacturers and other electronic device manufacturers,” wrote Morningstar analyst Brian Colello.

“Although the company faces an intense competitive landscape, it should thrive as the mobile phone industry focuses on 5G devices.”

4. Market axis (MKTX) – Get a free reportan electronic bond trading platform

Morningstar moat: wide. Morningstar Fair Value Estimate: $305. Wednesday's quote: $264.80.

“As MarketAxess implements new features like automated trade execution and expands its comprehensive Open Trading network, the cost and liquidity advantages of electronic trading networks over traditional methods continue to increase,” wrote Morningstar analyst Michael Miller .

5. Edwards Life Sciences (E.W.) – Get a free reporta manufacturer of medical devices for heart disease

Morningstar moat: narrow. Morningstar Fair Value Estimate: $86. Wednesday Price Quote: $69.70.

“Over the past two decades, Edwards Lifesciences has demonstrated that it knows how to maintain leadership through tissue heart valve innovation,” wrote Morningstar analyst Debbie Wang.

“Edwards remains the dominant force in surgical heart valves and minimally invasive valve therapy.”