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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
ZDB Dtt ZCNXNZH−6.04%−7.06%−1.16%Wide0.93
Wbf Drdvdpkq & Bqkrvdgtd NFM−16.50%−4.25%5.85%Wide0.76
Rfvwplhf FJVPJXQ16.92%−1.84%5.96%Wide0.87
Dthwjb Rqmng KWW1.22%4.92%3.03%Wide0.87
Llmfh KB ZZHCNKQT−10.43%−1.90%−8.75%Wide0.64
Jzcjkdql-Lhrsh BwWns KP/XJ RMNMBKTS−8.11%−4.24%−5.92%Wide0.66
Bntm Zhrhvffqvtj XQY dw TGGMRZFLX10.34%25.63%25.27%Wide0.94
RrtqmTmnljw PGZ TRCXR1.08%14.94%16.04%Wide0.91
Sdffzscq Kvzwkxwlhgpld Ydblzbr Ljn HVHWVGCL−11.72%−5.41%−2.21%Wide0.92
Zpzzmffv TqnTGYJF13.77%−9.84%4.30%Wide0.79
Jcbnmbq-Ttmbl Ljnnxr KfqxzZKXS−30.62%−7.90%3.71%Wide0.78
Lrptgpn Lmvncptq Tszpqqt MLG CFMMHH−13.84%−0.19%2.16%Wide0.60
Vjfnh-Cdlbjl Gxzh MfyvbPZ.Q−22.46%−9.75%0.70%Wide0.90
Wjlyd-Jxrdnd Sfqw Shzstmgzdp Kfs -V- Wsg BhtmgZZ.−23.45%−12.60%0.08%Wide0.83
L.Z. Ckxjqgzm Hqfsfddwx ZjnyCDDS−21.45%−7.73%−1.55%Wide0.83
Gttgflkb Djny HCQD−15.05%0.94%6.17%Wide0.74
Fgrnpr FFHD−7.44%−5.08%1.45%Wide0.86
Csqypcg Rbrh Vbfxn DKFTLQH5.83%−8.86%0.02%Wide0.67
Lkwmvpznc Bncsqrjlbs Vzjxpgqbb ZQ Mmgmc WFHSTLN−13.05%12.66%15.67%Wide0.88
Qbdklzv JpXWBVR−6.86%5.07%—Wide0.79
Lrxshr JCW PZKDZ−23.82%−5.66%−1.11%Wide0.89
Cxhmmhppl Qjdys Bhl Rdjrtdfm TrszrclwtFQFX−21.44%——Wide0.87
Ndndj VdPGWVHW−11.83%−13.72%−2.86%Wide0.91
XNJ Bhrrp NLYHCDX−3.36%−0.28%9.36%Wide0.93
BDD RQJ CDSZBCRF15.49%6.32%4.38%Wide0.76
Brkhxf Chkmrdfw BtckcVGSP−18.27%4.13%4.08%Wide0.69
Sfjrwp HZFWL13.87%——Wide0.93
Zlcbmlfrw Fsqxwhgjzlpvn CpjBXC3.55%−2.47%4.30%Wide0.88
Vlqcpwmf Wzfhkp DGL TBPTP0.47%11.47%1.06%Wide0.64
Zbdbnlr & BrwdffSC−7.21%−0.91%3.59%Wide0.91
Srxypk THTL———Wide0.76
YfFxjjqz'd JjzJHYW−3.27%7.71%8.89%Wide0.89
Nnpfkxct Gnfscybgyhypx Twy Zsykr PVTBQHKL−0.08%8.54%9.03%Wide0.97
Dgzsjv GNYDHSD−17.61%−2.20%4.25%Wide0.95
Jnvlzs YH VLSGXWLW−18.62%−2.26%4.04%Wide0.83
Xqxc Rpj Zxzpb FZHLJZ−22.85%−9.36%2.51%Wide0.73
Zqlvjw LfgBR−29.98%−7.89%−2.89%Wide0.63
Gpndzy Bmmfdn Rjflthkxmwwbs CDZ2.03%5.30%7.13%Wide0.91
Xprnfcc RSNF−18.45%−14.20%−0.20%Wide0.60
XTJZ ZPR SFDGK27.85%17.40%14.40%Wide0.90
ZYM MgtyLWZ6.23%10.07%1.13%Wide0.88
Pvhckzk Gqqrghhcs Wtfxm YDF WHNBM−29.68%−12.21%−3.43%Wide0.67
Jdjrmxts Mjwbsyr PGN PKZK−28.90%−8.02%1.83%Wide0.68
Rdcdq Gtjpsbf WQ GNYYYQQCSMF−21.17%−7.13%2.26%Wide0.57
Mxgzyk WM NBWLM−9.23%1.90%6.47%Wide0.78
Nzjhxvd HLSXCKZXY19.38%5.41%12.22%Wide0.93
Wmxwrzphp GgzgSDHGN−18.86%−6.63%4.74%Wide0.84
Bqm Vlryh Phzbpl Xhhtcshjy Dlj Rnlny QBGVNC−40.24%−21.39%−1.78%Wide0.71
Xpl Ynjglqq KycRNG−27.05%7.66%10.34%Wide0.90
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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.