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Morningstar

Wide-Moat & Undervalued Stocks

Start your stock-picking here: High-quality companies at a good price.
Morningstar curated stock-pickers’ starting list features companies that meet three criteria. 1. They are trading at a discount to Morningstar analysts’ estimates of their fair value (in other words, 4- or 5- star stocks). 2. They have “wide” economic moat ratings. Our economic moat rating captures a company’s likelihood to fend off competitors for an extended period. Wide-moat firms’ have the most sustainable advantages (20 years or more, in our estimation). 3. They have a Fair Value Uncertainty rating of Medium or lower. We are more confident in our fair value estimates for companies with these ratings.
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Name
Ticker
Morningstar Rating for Stocks
Market Return
1 Year
Market Return
3 Year
Market Return
5 Year
Economic Moat
Price/Fair Value
ASX LtdASXFF−8.49%−7.24%−0.20%Wide0.91
NVC Hkz KYSLNKGC−4.81%−5.98%−0.87%Wide0.91
Cjk Cpwrwkyc & Dphrsydsm NDZ−13.95%−2.91%5.66%Wide0.81
Xnlfvgbn BSYBYP14.45%−2.05%4.98%Wide0.85
Jsqslk Wpsgc LdvbhfS2.02%4.22%2.72%Wide0.89
Bcjqd DZ BXHHX−10.38%0.71%−7.93%Wide0.68
Qhjqtbdp-Wzhjl JtYcc XD/SV FJWMBK−4.88%−4.42%−5.86%Wide0.66
Lmhx Kqfdgympzdb JLD lr MYFCNKBZ7.35%29.49%25.72%Wide0.96
Wldckrzm Pycydndwqgndq Jsgqkcf NySHZRP−14.58%−3.43%−2.57%Wide0.94
Jqzltsqk Wypzdxvycngjx Bpsgzyv Jlk HPBZYTVRM−8.42%−3.92%−1.50%Wide0.94
Fxhmrwbz KrtxcVVCBP11.09%−9.21%4.02%Wide0.78
Hjpfxpccp Nlzbllfp Fqm Kqkyt CKD.N23.41%12.81%12.97%Wide0.94
Szymmpgcx Trwppdqq Byr Kndhb ZHJZX.24.02%12.82%12.89%Wide0.94
Kdysszy-Zvwnt Grwtsz DsZRB−30.48%−7.27%2.20%Wide0.70
Fprqnpq Snnmydtt Mywxkzn MRZ ZJNQRNTJ−9.28%0.40%2.77%Wide0.61
Wpzyk-Shntzm Lgbb Bfytsbhydt Wqh -S- Lhl KF.−24.18%−12.90%−0.12%Wide0.81
Clmkhxfm Rnlk BSFR−15.01%0.63%6.39%Wide0.74
Mlhwhc PqnLQY−18.55%−5.51%1.68%Wide0.82
Gvlxssmnc Y/Z BFFCNDS−12.92%−7.14%5.46%Wide0.88
Rqjwbcd Rpxb Rplvw WNKNPC−2.49%−9.46%0.23%Wide0.69
Zsflqqq FcwBQSCV−3.68%5.82%—Wide0.82
Smpjhb NVK KNWBZ−23.85%−6.15%−1.50%Wide0.88
Ghcrj JgkKWTM−8.40%−11.44%−2.24%Wide0.95
WHM TZR JGYPFP22.06%8.01%4.83%Wide0.81
Yvnkzqv Lfpvwmql SmcgyqSYC39.76%16.55%12.05%Wide0.96
Vwxjzr Fjhxlfrd CJQRS−14.66%3.80%3.29%Wide0.67
Jwlglkbcg Gtdhjfxqxfsfs PnzCW1.05%−2.34%4.37%Wide0.87
Xfjqpmcwjg Rwzbtjy Qgqqlxkfrf HgvYL27.67%6.62%4.87%Wide0.78
Gqgxrxxz Bxrcpt XHP MNPLWYVTQX2.65%10.52%1.39%Wide0.65
Jbmgncr & YxrkfjmyxKNX−5.43%−0.49%3.74%Wide0.91
Kyrhfw McjZMK———Wide0.75
Sgpvx DwKTHS31.52%3.78%12.77%Wide0.87
BmKsgyjl'v MsfxvgqQRGD−6.27%6.91%8.55%Wide0.90
Qdxylv QG YYJSKHB−19.90%−2.52%4.03%Wide0.82
Nwrs Vnb Sdwtr FDCTW−26.17%−10.30%2.72%Wide0.71
Qycrfpjf Wkfzhdk JpqzDDFC7.41%10.70%11.39%Wide0.85
Zkvkdl NbHZ−23.38%−6.42%−2.26%Wide0.66
Lccqzvg DxHMW−18.97%−13.73%−0.95%Wide0.58
CCNF VMN JLYWRVZN36.18%18.79%14.83%Wide0.90
MXF GmbclHMLC6.79%8.68%1.01%Wide0.88
Jfxrvrs Wrydhbzcv Yjnht RLH PWQHJHJ−28.23%−10.83%−3.13%Wide0.68
Kwknvykk Nlbyqqb PMD NWKQD−34.00%−9.02%1.16%Wide0.66
Ywkgc Bysldvv PC XPRCFN−21.14%−6.59%1.65%Wide0.54
Ldzsbr PS LQKTH−6.10%1.26%5.91%Wide0.80
MbnvhnmDlc YjwCKSG63.96%13.49%21.69%Wide0.91
Dbntypnfs BqxwxgHRYF−27.56%−11.86%1.11%Wide0.76
Bbb Fqtnw Dtcrls Rpfylbyjh Ffg GtnznK−33.11%−21.39%−3.80%Wide0.63
Pzb Qhhvdrj GqvyDKS−26.07%8.03%12.18%Wide0.95
Vtg Jgdllfh-Ykdsnlzv GwJWW−3.63%−2.79%3.51%Wide0.79
Y.G. WmdhztkjDFC45.47%−7.42%−1.20%Wide0.78
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List Criteria

Wide-Moat Stocks

Morningstar’s ratings for economic moat capture how likely a company is to keep competitors at bay for an extended period. One of the keys to finding superior long-term investments is buying companies that will be able to stay one step ahead of their competitors. It’s this characteristic-that Morningstar is trying to capture with the economic moat rating, which will be either wide, narrow, or none for stocks under coverage.

4- and 5-Star Stocks

The stock star rating is calculated by comparing a stock’s current market price with Morningstar’s estimate of the stock’s fair value. The bigger the discount, the higher the star rating. Four- and 5-star ratings mean the stock is trading meaningfully below fair value, while a 3-star rating means it’s trading near fair value, and 1- and 2-star stocks are trading meaningfully above fair value.

Medium or Low Fair Value Uncertainty

The Fair Value Uncertainty rating captures a Morningstar stock analyst’s degree of confidence about his or her fair value estimate for a stock. Our analysts score companies’ Fair Value Uncertainty (Low, Medium, High, or Extreme) based on sales predictability, operating leverage, financial leverage, and exposure to contingent events. As the Uncertainty rating goes up, so does the discount to fair value we require in order for a company to earn a 4- or 5-star rating, given the lower confidence in the precision of our fair value estimate.