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3 High-Quality Stocks to Buy Now

These wide-moat stocks are all trading at least 25% below their fair value estimates.

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Rarely does quality go on sale. Just ask the millennial who wants to propose with a Tiffany diamond, the kids who want to buy mom that Prada tote she has always wanted, or the parent who'd like to spend less than $200 on the latest Lego Star Wars Assault on Hoth set.  

Yet quality is on sale in the market today. According to Morningstar's Market Fair Value chart, the price/fair value ratio for the median stock our coverage universe is 0.99, suggesting that the market as a whole is fairly valued. Specifically, no-moat stocks--or those we deem to have no significant competitive advantages--are about 3% overpriced. Conversely, those stocks with wide moats--or strong competitive advantages--are undervalued: They're trading at a median price/fair value of 0.94. In other words, the average high-quality stock is 6% underpriced today. (Learn more about our economic moat ratings here.)

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