4 Cheap Picks in Our Wide Moat Focus Index
Stericycle, Express Scripts, Allergan, and Disney have strong competitive advantages and are trading at a discount to our fair value estimates.
Karen Wallace: Four of the 10 cheapest stocks in the Morningstar Wide Moat Focus Index are currently among our analysts' highest-conviction picks. The Wide Moat Focus Index targets stocks with strong competitive advantages that are trading at a discount to our analysts' estimates of their fair values.
Stericycle is an integrated specialty waste hauler in the medical industry. Its wide moat owes to its unmatched scale in medical waste collection, treatment, and disposal assets, which combine to create cost advantage and customer switching costs. Stericycle's ability to manage the entire disposal process has attracted a dense network of over 500,000 customers with an annual retention rate of over 90%. As of June 19, Stericycle was trading at almost a 30% discount to our fair value estimate.
Karen Wallace does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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