Add These Core Stocks to Your Buy List in 2026

I'm Susan Jabinski, co-host of The Morning Filter. On the January 6th episode of the podcast, Morningstar chief U.S. market strategist Dave Sequeira talked about what core stocks are, what role they can play in a portfolio, and which core stocks looked most attractive to him. Now you can catch the episode by clicking the link beneath this video. From Dave's perspective, core stocks have a few things in common. First, they have significant competitive advantages and earned wide economic moat ratings from Morningstar. These companies also have low or medium uncertainty around their cash flows, which tend to be pretty predictable. The companies are run by adept managers, and often these managers return cash to shareholders with regular dividend payments. Dave suggests buying shares of these companies when they trade near or below Morningstar's fair value estimates. So using Dave's criteria, here are two more core stocks to buy and hold in 2026. The first core stock to buy is Campbell's. Campbell's has undergone significant changes during the past several years. For one, its portfolio mix has shifted, with its core soup lineup now accounting for just 25% of total sales, while snacks account for about 40% of sales. Management has driven efficiencies across its supply chain and manufacturing network so that it can increase spending behind its brands and capabilities. We forecast low single-digit annual sales growth and mid to high single-digit adjusted average earnings per share growth over the next decade. Stock's yield is attractive, too, and we forecast high single-digit growth in the dividend over time. We think Campbell's stock looks significantly undervalued. We assign shares a $60 fair value estimate. The second core stock to buy and hold in 2026 is Guidewire Software. Now while not a household name like Campbell's, Guidewire has built a wide economic moat with its cloud-based software solutions for property and casualty insurers. We see a long runway for growth in the form of new client wins, expansions to additional lines within existing customers, and cross-selling additional solutions. In fact, we're forecasting a five-year compound annual growth rate in revenue of 15%. Guidewire doesn't pay a dividend, and we don't expect it to do so anytime soon. We think management will continue to reinvest back in the business, though it did recently initiate a small buyback program. Guidewire's stock looks undervalued. We think the stock is worth $210 per share. For more stocks to buy, tune in to the Morning Filter each week, wherever you get your podcasts. And visit Morningstar.com to learn more.