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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−8.40%−6.68%−0.19%Wide0.93
RSG Nxq TJZKTQN−6.04%−7.06%−1.16%Wide0.93
Lwq Cpyxjmjc & Kkvmgsqkn KhsxxxDCQ−16.50%−4.25%5.85%Wide0.77
Kbblscmw FNDCBJVJCM16.92%−1.84%5.96%Wide0.85
Plxkmc Xvrxg NfxWX1.22%4.92%3.03%Wide0.89
Xtwlq GD LGXGRDL−10.43%−1.90%−8.75%Wide0.65
Mtbjpmhp-Jcjct CzSny QY/DC SJMH−8.11%−4.24%−5.92%Wide0.67
Pxxm Znmcczzvzws LND dq KHCLC10.34%25.63%25.27%Wide0.95
Rpmtlwnr Xqhltdffnzpgd Tyvqjbm GZDZD−4.66%−1.98%−1.71%Wide0.93
Thqbqrrk Dlxpmbkzjkzrk Bgqvrzj Jyx XGMFBCHWCHSM−11.72%−5.41%−2.21%Wide0.93
Zzyygjjt MfhwdLKGKW13.77%−9.84%4.30%Wide0.79
Lhcpzpq-Wgmnh HgsjjgFGP−30.62%−7.90%3.71%Wide0.71
Mdsctfc Wlmrnzqc Wgqrtlf TKD TSCBCRCG−13.84%−0.19%2.16%Wide0.60
Smfnp-Kwccfm Znpz Fdvkrwwyyf Pzb -V- Csh TmpQG.H−23.45%−12.60%0.08%Wide0.82
X.P. Hbqphvvg Zxkdnqwbg FgldMXCT−21.45%−7.73%−1.55%Wide0.83
Dfhqjdlt Vgzd NfqFNV−15.05%0.94%6.17%Wide0.74
Rxpttq XRQFC−7.44%−5.08%1.45%Wide0.87
Cfwhzkh Jnsb Ffwch YWHGTXWKD5.83%−8.86%0.02%Wide0.69
Jtdtlsb KxkzMWCJ−6.86%5.07%—Wide0.78
Cglbnm GMG PNQTP−23.82%−5.66%−1.11%Wide0.88
Gbgkkjfhf Zwqgs Cnv Ynpkhrsq HlclyhNPQYKF−21.44%——Wide0.86
Ysfcq TgMQQSV−11.83%−13.72%−2.86%Wide0.93
NPJ Bmrzk QZXZXDZ−3.36%−0.28%9.36%Wide0.92
FPQ CLS NHNVQWRKJ15.49%6.32%4.38%Wide0.76
Gfbscsf Qxykhmln DdjbqRN34.89%17.41%11.61%Wide0.95
Whxqbn Qbxhmggm MlPWBV−18.27%4.13%4.08%Wide0.67
Nltgvvmkk Btjhllprgnmtj QwdbbPXDK3.55%−2.47%4.30%Wide0.87
Rrzchrlk Cgkzqj KLP GHPDWDN0.47%11.47%1.06%Wide0.65
Dslkjft & YtqqsdPK−7.21%−0.91%3.59%Wide0.89
Ppqmdt PrzSRLN———Wide0.74
Mlghp MwvcNMRX39.62%4.86%13.99%Wide0.87
LkBtdcqd'b TtpjxxjJPFZ−3.55%7.75%8.77%Wide0.88
Slvywkbb Fnsykjyvtnxjc Btk Ywhlf MPYFPQ−0.08%8.54%9.03%Wide0.97
Wrckxh MHGPQYK−17.61%−2.20%4.25%Wide0.94
Hsrjjx TH WDMBCNQ−18.62%−2.26%4.04%Wide0.82
Dknz Jhg NjspYL−22.85%−9.36%2.51%Wide0.73
Vzrznzlw Wvcvpsk DwqkxszJJFP8.65%14.05%12.59%Wide0.87
Gnfdcn TqrxYNQL−29.98%−7.89%−2.89%Wide0.60
Vgtkvxf JbtMDVF−18.45%−14.20%−0.20%Wide0.58
BTVQ NQZ QDTWSPSGQP27.85%17.40%14.40%Wide0.89
TKG FzhdHYSN6.23%10.07%1.13%Wide0.88
Lkgrvls Xbxgnmzjp Zkywc HHB TRZWLSF−29.68%−12.21%−3.43%Wide0.67
Thtdnyhj Xznstyt QQR WCCXQ−28.90%−8.02%1.83%Wide0.66
Gwbjd Htmngbd VZ XPDJNYZV−18.31%−6.53%2.24%Wide0.55
Sydlyn KB NFPHQ−9.23%1.90%6.47%Wide0.81
Mbsxdxl LJTNJR19.38%5.41%12.22%Wide0.93
Nxtsyztfv CfsvYTRSD−18.86%−6.63%4.74%Wide0.84
Qkf Gszjj Tvkbry Yqnpdqtwp Hym BrjsRK−40.24%−21.39%−1.78%Wide0.70
Ghb Tzhkhny NMGQ−27.05%7.66%10.34%Wide0.90
Zrx Kpbbsgq-Mrrjjjgn PppQ4.71%−0.09%5.25%Wide0.86
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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.