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Wide-Moat Stocks Tossed in the Bargain Bin

Recent market tumult has created some high-conviction opportunities for long-term investors.

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Stocks lost ground during the third quarter of 2015, but it's hard to call it a drubbing. Over the 13-week period ended Oct. 1, the S&P 500 lost around 6.5%, and the Dow and the Nasdaq each shed around 7%. Considering that equities were pretty fully valued or, in many cases, overvalued as the quarter began, a minor correction wasn't really enough to push the market into bargain territory.

And indeed, after the third-quarter dust has settled a bit, the median stock in Morningstar's coverage universe is still close to fairly valued, at 0.95. Still, there are some pockets of opportunity among specific firms.

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