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10 Cheap No-Moat Stocks to Consider

Susan Dziubinski

Last week, we discussed some high-quality stocks that might be worth paying more for, perhaps because they hail from overpriced industries or are run by exceptional managers. As longtime readers know, Morningstar prizes quality companies with solid competitive advantages--in other words, we favor wide-moat stocks--because we think that they can fend off competitors over time and therefore thrive financially.

But there are plenty of ways to make money with stocks. So this week, we’re turning the tables, looking at undervalued low-quality stocks. Specifically, we screened for no-moat stocks trading in 4- and 5-star range that carry low to medium uncertainty and stable or positive moat trends.

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