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6 Competitive Stocks to Consider

These newly rated stocks all earn Morningstar economic moat ratings of narrow.

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A few months ago, Morningstar's equity research team initiated coverage of one of this year’s most-anticipated IPOs, Coinbase (COIN). Though the company is the leading U.S.-based cryptocurrency exchange, we don’t think it has carved out a competitive advantage and therefore assign it a no-moat rating.

“Coinbase has built a strong competitive position for itself, but without more confidence in the long-term viability of cryptocurrency as an asset class there is too much potential for Coinbase's returns on invested capital to rapidly evaporate for us to award the company a moat,” explains analyst Michael Miller.

Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.