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A Moat Upgrade for the New Year

One company was awarded a moat last month while a few others experienced fair value increases of 10% of more.

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There wasn't much joy in Mudville in December: Morningstar cut the fair value estimates on more than three dozen stocks last month. Many of the changes were due to re-evaluations of entire industries.

For instance, meaningfully weaker near-term crude prices dampened valuations across our upstream oil and gas coverage universe. We lowered our fair value estimates for offshore drillers, in the range of about 10%-20%, stemming from decreases in our long-term floater rig demand forecasts. And we updated our fair value estimates on land drillers, as we've revised our U.S. land drilling forecasts.

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