Skip to Content
Premium Article

4 Misunderstood Stocks With Moats

Premium Exclusive: The market was unimpressed with the results from these moaty companies this week, but we think their long-term stories remain intact.

Mentioned: , , , , , ,

So far, so good this earnings season. With earnings in for just over half of all S&P 500 companies, FactSet notes that 79% of those companies have reported a positive earnings surprise, lifting the blended earnings growth rate on the S&P 500 to an impressive 23.2% for the quarter thus far.

At Morningstar, we don't give quarterly earnings reports and short-term guidance too much weight. Rather, we focus on a company's long-term sustainable competitive advantages, encapsulated in our economic moat ratings. We expect companies with moats to deliver superior returns over time. Of course, a company might release information when reporting earnings that will lead an analyst to change his or her moat rating or fair value estimate of the company. But more often than not, short-term earnings disappointments are no more than blips in the long-term picture.

This article is exclusive to Morningstar Premium members.

Start a 14-Day Free Trial

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

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.