10 Cheap Stocks With Wide Moats and Low ESG Risk
For sustainable investors, explore opportunities in GSK, Guidewire, Disney, TSMC, and more.
Adam Fleck
Adam Fleck is the director of equity research, ESG for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. He leads Morningstar's environmental, social, and governance equity research efforts, including collaboration with Sustainalytics, along with a team of analysts in Chicago and Amsterdam.
Before assuming his current role, Fleck was Morningstar's regional director of equity research in Australia and New Zealand and director of North American consumer equity research. He joined Morningstar in 2006.
Fleck holds a bachelor's degree in business administration from the University of Notre Dame, where he graduated cum laude. He also holds the Chartered Financial Analyst® designation.
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First-quarter revenue grew 1% year over year, with strength in most key markets and distribution channels.
Coca-Cola's Results Highlight Positive Trajectory
We will likely raise our $44 fair value estimate slightly, but shares still look fairly valued today.
Boston Beer Company Has Growth Potential on Tap
Shares of this narrow-moat company are trading at a discount to our fair value estimate.
Market Overly Optimistic on Constellation Brands
Despite posting fine second-quarter results, the narrow-moat beer- and wine-maker will enjoy above-industry volume gains, but at a slowing rate.
Consumer Defensive: A Handful of Values in an Overheated Sector
Cost-cutting remains a focus amid continued slowing growth, but the sector is overvalued on the whole.
Boston Beer Looks Attractive
The narrow-moat firm's shares now trade at a substantial discount to our fair value estimate, due in part to recent market share challenges in its craft beer and cider portfolios.
Profitability Continues to Improve at Pepsi
Productivity has been a primary driver of margin expansion at the wide-moat beverage-maker, and we expect it, along with continued pricing strength, to drive margin improvement for the next few years.
Coke’s Marketing Can’t Overcome Headwinds
Volume slowed in Coke’s second quarter, but we still think the firm can grow over the long-term and are sticking with our fair value estimate.
Dr Pepper Snapple's Lofty Valuation Leaves a Sour Taste
With limited revenue growth and margin expansion opportunities, a narrow moat still can't justify the stock price.
Less Thirst for Soda Doesn't Hurt All Soft Drink Makers
Growth of sports drinks and bottled water plus smaller package sizes will help offset declines in soda consumption in the U.S., says Morningstar's Adam Fleck.
Coke Still on Track; Shares Fully Valued
First-quarter revenue growth for the wide-moat beverage maker trailed our full-year estimates, but we expect growth to increase later in the year, writes Morningstar's Adam Fleck.
Coke Still Has Room to Boost Profitability, But Shares Fairly Valued
Cost-savings programs, improved pricing, and bottling divestitures should drive near- and long-term margin expansion at wide-moat Coke, writes Morningstar’s Adam Fleck.
Coke: Not All Bad News
Coke’s third-quarter was marked by positive pricing trends, encouraging volume expansion and solid profitability, but its shares are fairly valued, writes Morningstar’s Adam Fleck.
Coke Sees Positive Price and Volume Growth
The beverage behemoth continues to capitalize on its already-strong share position and sizable distribution network even as a strong dollar weighs on reported results, writes Morningstar analyst Adam Fleck.
Pepsi's Growth Story Was All About Pricing
Positive net pricing drove nearly the entirety of the firm's 5% second-quarter organic revenue growth year over year, while volume growth slowed to a halt.
Consumer Defensive: Top-Shelf Picks for a Cautious Spending Environment
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Boston Beer: Wait for the Foam to Settle
The narrow-moat brewer will continue to benefit from the ongoing craft-beer revolution, but the stock's current valuation is heady.
Coke Begins Transition Year on Strong Note
Growth is likely to slow later in the year, but we believe continued productivity enhancements and growth opportunities should support high-single-digit earnings growth over the long run.
Boston Beer's Valuation Too Foamy
The craft beer revolution continues, but we expect heightened competition to slow growth rates.
Still Beverages and a Sparkling Future
Brand image, North American still-beverage growth, and emerging-market carbonated-beverage growth support Coca-Cola's wide moat.
Coke's 4Q Growth and Margins Improve, but Shares Look Fairly Valued
Coke delivered a solid quarter, but our long term-assumptions for the firm remain in place, writes Morningstar‘s Adam Fleck.
Consumer Defensive: Only a Handful of Values Left
Strong brands and cost advantages are key in the current global consumer spending environment.
Undervalued Coke Shares May Be Worth a Sip
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We Remain Encouraged by Coke’s Cash Flow
Improved volume and pricing has helped Coke grow operating income despite currency and other headwinds, says Morningstar’s Adam Fleck.
Consumer Cyclical Picks for a Choppy Retail Market
Steady U.S. retail spending and rebounding European and Chinese sales offer decent end-market outlooks for consumer cyclical companies, but the larger retail spending environment remains uncertain around the world.
Shop for Moats in Consumer Defensive Stocks
With roughly two thirds of this sector enjoying a narrow or wide economic moat, we continue to find pockets of opportunity when short-term concerns outweigh our forecasted long-term growth trajectories.
Coke's Moat Has More Fizz Than Pepsi's
Coke offers a better margin of safety, better international opportunities, and exemplary stewardship compared with its chief competitor.
This Stock Will Keep On Truckin'
We think the market is too focused on near-term farm equipment headwinds and not enough on a cyclical European trucking upturn.
Caterpillar Reports Moderating Declines in Mining, Rebounding Results in Construction, and Solid Free Cash Flow
Following Cat's fourth-quarter results, in line with our forecast, our fair value estimate remains $94.
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Joy Global and Caterpillar Digging Up Long-Term Value in Mining
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Cat Shares Still Look Undervalued
Despite slowing growth, shares of the industrial giant look cheap, says Morningstar's Adam Fleck.
Our Outlook for Industrials Stocks
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Our Outlook for Industrial Stocks
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