Morningstar recommends two large growth stocks with moats and high upside potential

The experts at Morningstar currently recommend buying two well-known large growth stocks. Both have a moat and high upside potential.

The experts at the US analysis company Morningstar assume that economic growth in the USA will weaken in the next few quarters. Growth stocks in particular would have to struggle with this. Nevertheless, investors could bet on growth stocks if they keep two things in mind:
1. Companies should be able to maintain their good margins even in a worse economic environment.
2. Investors should limit the risk of the investment by buying very cheap growth stocks that therefore have a safety margin.
And Morningstar now recommends the following two stocks with moats:

2 undervalued billion-dollar growth stocks with moats

Expert Susan Dziubinski explains: "Our first cheap large growth stock to buy is ASML Holding. ASML is the market leader in photolithography systems for semiconductor manufacturing." The Dutch company is currently in a slight short-term downward trend, as the ASML share chart shows. With a P/E ratio of around 22 and a dividend yield of currently 1.41 percent, the European company is neither cheap nor expensive.
And Morningstar continues in the assessment: "ASML continues to experience strong growth in 2023 despite a weak chip market, driven in large part by demand from China. Morningstar expects this demand to weaken in the future, both organically and due to recently updated US export restrictions. However, we believe ASML will offset this with demand in other regions."
Morningstar sees the fair value of ASML at 711 euros, which means a current price potential of 26 percent.

The second stock that Susan Dziubinski and Morningstar recommend is AstaZeneca stock. And Morningstar writes: "The company sells branded drugs in several key therapeutic classes. Morningstar believes Astra's pipeline is one of the strongest in the drug group, and we believe the company is developing several key products that have blockbuster potential."
Meanwhile, British pharmaceutical shares haven't really moved along the charts for about a year. However, AstraZeneca shares are still in an upward trend over the long term. The British are also attractively valued with a P/E ratio of 16.3 and a dividend yield of 2.41 percent. And Morningstar also comes to this conclusion because, in addition to good products, AstraZeneca also has strong pricing power for cancer drugs, which would speak for high margins. According to Morningstar, the fair value for the AstraZeneca ADRs that Morningstar looked at is $78, around 23 percent above the current price. However, we would recommend that European investors buy the normal AstraZeneca shares.