A Look at Recent Fair Value Changes
We've made substantial revisions to some of our fair value estimates.
Over the past two weeks, Morningstar analysts have made revisions to the fair value estimates of several dozen companies in light of earnings releases.
Among the major upward revisions are some quality industrials names that we consider to have economic moats: Steel Dynamics (STLD), Johnson Controls (JCI), and Precision Castparts (PCP). (The latter was featured in the latest issue of Morningstar GrowthInvestor.) We also upped the fair value estimates for two wide-moat financials, Capital One (COF) and Bank of America (BAC). But the largest fair value change was for one of the eight Korean companies on our coverage list: Kookmin Bank (KB). Don't rush out to pick up shares, though. Even with the upgrade, we still rate it 1 star and consider it a speculative stock.
Haywood Kelly, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.