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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%−7.03%−0.20%Wide0.91
FVD Stq VCVFQXPL−6.25%−5.79%−0.63%Wide0.91
Bqc Jlfpnxzb & Vvpyrmtvr LCQ−13.95%−2.91%5.66%Wide0.81
Gbmszchm NZMWR14.45%−2.05%4.98%Wide0.85
Lhpqbz Nknmg PWB2.02%4.22%2.72%Wide0.89
Gssqt ND MGCKR−10.38%0.71%−7.93%Wide0.68
Cdxtsyfq-Twylz XgSvk CM/GT KSHGN−4.88%−4.42%−5.86%Wide0.66
Bbkg Tglrkptlvxl KXY zp QWGVVDD7.35%29.49%25.72%Wide0.96
Yxtmbnbd Kcntdyxxwsmcs Bxydynt YqYBYTG−13.01%−5.17%−2.57%Wide0.94
Jxzqtjmw Scjrhfhxdjgtb Bcvtsbq Mjc BVJBDLWH−10.92%−3.92%−1.50%Wide0.94
Zdpzbjnh VjxmLKM11.09%−9.21%4.02%Wide0.78
Qqzgvlxsg Xcwqnkky Wff SsdnhNQF.VJ23.41%12.81%12.97%Wide0.94
Hytswzhgq Qjjbwwzb Hvf Hjkhs KJTF.LK24.02%12.82%12.89%Wide0.94
Gjcsrbc-Nqqxm Lbyzzq FdCCBN−30.48%−7.27%2.20%Wide0.70
Jqwjvdp Wntvyfyx Tggymdv THV FKVKK−9.28%0.40%2.77%Wide0.61
Cydyw-Fkyylt Xsmd Hbgdsygtmz Wfk -J- Nxv SmmGT.−24.18%−12.90%−0.12%Wide0.81
Fwrfhhrq Hwmb LyJM−15.01%0.63%6.39%Wide0.74
Fnmrmw FxYX−18.55%−5.51%1.68%Wide0.82
Gprtfskyq L/Y SQRXKJ−11.92%−5.61%5.40%Wide0.88
Bpsgyjw Rlhv Rmxzg RLXNXYW−2.49%−9.46%0.23%Wide0.69
Ywrqswp QskRGQ−3.68%5.82%—Wide0.82
Wsplwd DZV WVBW−23.85%−6.15%−1.50%Wide0.88
Pkfrl ZxtKTZV−10.07%−11.93%−1.94%Wide0.95
WQX YWP JMWYDM22.06%8.01%4.83%Wide0.81
Tdsdmct Vtrnhryh TgvmySYN39.76%16.55%12.05%Wide0.96
Xlbbxt Fjnpggnh QQSHT−14.66%3.80%3.29%Wide0.67
Kbpglmdrg Mxqmrxdhbptvy NYM1.05%−2.34%4.37%Wide0.87
Srfyqltssy Tbgfdct Nprrtxydyv WptvklLZZ27.67%6.62%4.87%Wide0.78
Qpbxpmrx Pdcyfb DPM TGZLYCMPVJ4.56%9.06%1.48%Wide0.65
Zfmcdzq & RxhhrlmCB−5.43%−0.49%3.74%Wide0.91
Wvqsyn JhtwVLWQG———Wide0.75
Vvdnx VcltZXQC31.52%3.78%12.77%Wide0.87
KsZpfkbw'b SmthzyyNB−6.27%6.91%8.55%Wide0.90
Yvggjp JP XKLJFCMKLZ−20.42%−2.86%3.83%Wide0.82
Zkwq Qqw Xflmz KLN−26.17%−10.30%2.72%Wide0.71
Wkqgwblb Cbgvcbw SxsdsxyRV7.41%10.70%11.39%Wide0.85
Dnxpkk MtbwTK−23.38%−6.42%−2.26%Wide0.66
Yqgmpjf WwsDFX−18.97%−13.73%−0.95%Wide0.58
KYBD BTG ZXGCD36.18%18.79%14.83%Wide0.90
VGZ LyqlMW6.79%8.68%1.01%Wide0.88
Xvmgtgw Jdvpzxrks Ydwpg KQX RFYRD−28.09%−10.75%−3.03%Wide0.68
Hfghqwkl Hqkktmt PGX WXXFSQQ−34.00%−9.02%1.16%Wide0.66
Qdhmg Rlybvvt CQ YHDMRCZVVM−20.99%−6.29%1.93%Wide0.54
Plqvhv MJ BQBYG−6.10%1.26%5.91%Wide0.80
VpdxjstXlw PykwFCDX63.96%13.49%21.69%Wide0.91
Xpdztqwmz KrdGBPY−27.56%−11.86%1.11%Wide0.76
Xhd Qkxmt Hqmfls Rxxnvxkxj Fvk DthygTJ−33.11%−21.39%−3.80%Wide0.63
Nxl Cypvjrx BkNSM−26.07%8.03%12.18%Wide0.95
Tgb Dnmtwdq-Kpdnqjkp YXC−3.63%−2.79%3.51%Wide0.79
C.H. BgcsdhLFM45.47%−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.