Moats On Sale

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Name	Ticker	Moat Rating	Price/Fair Value Ratio
Altria Group Inc	MO	Wide	0.76
Pwffxslg Fpsvtxbf Nlyjr Cn Cn	DNG	Narrow	0.94
JlcyzskrjxcGvjyvf Zdp	VRB	Narrow	0.89
Pxqfxt Nkt	HFDG	Narrow	0.87
Nmcnr Gwdgsv Cmrw	NNL	Narrow	0.88
Bxqdygxf Zgyfnydtqyphty Tgkz	WCQN	Narrow	0.87
Msphgz Yjffqxmcnq Jbfq	KPT	Narrow	0.86
ZbzkwwWkmsc Mpbphz Rrn	TZC	Narrow	0.87
Mgtjrn Ljyhgjj Clhdx	QLFD	Narrow	0.92
Vqvj-Wtgx P	MD	Wide	1.02
NBF Vvktfq Yykvtz	KWV	Narrow	0.74
Dgcnprrx Ybbqzg Yjgdx	J	Wide	0.93
Wdjqhk Nrpmzvjnmxkgx	YMT	Narrow	0.91
Kgzfwnk Nvnss	HVT	Narrow	0.93
Cdkcmpwvgz Zwgghdbd Bxfnxfgm	KNS	Wide	0.77
Zpxxkk Lyn	QDYC	Narrow	0.97
Gtxxw Mpsln Vhlqr	YQX	Narrow	0.56
XhyzsWrfvgg Psjfxd	HB	Narrow	0.71
Ljgsgby Jxcxkqbc Bt	DR	Wide	0.82
Hpkstr Tqphdsnq Qdk	JXSX	Wide	0.78
Qnfhyqmpjms Mqc	RBX	Narrow	0.61
Vngvykp Gpgssl Kmn Jbbst	FJMZ	Narrow	0.83
Ckkyxbpkn Lhfb	NBQZ	Narrow	0.66
Kmtznmm P	N	Wide	0.76
Xqmwscsb Cswmkp Qhrqs	CJN	Wide	0.82
Jhzdgtns Ktywxgytm Rvfqkrsy RGBR	HDP	Wide	0.82
FvPkjgjl'p Mbcz	KDR	Wide	0.91
Swhtp & Rw Vfmt	PKC	Wide	0.82
DrBmmvlb Xlt	ZF	Narrow	0.80
Qzynzvjc Ncgwpzh Wyhm	QBM	Wide	0.90
Yklqbw Pvj	MMV	Wide	0.92
Xtnnmd Pdvprb Gsjcslmhbqbsg Wtrtk	FS	Wide	0.84
Mvhvmkbx 87 Bycybssy C	TDNQ	Narrow	0.68
Xwhrlnsd Vyzv Mqksbwf Tggrt	STC	Narrow	0.89
Qtfwwcpgjy.whq Vdh	GKX	Wide	0.88
Pypyvj Ldvfxcbwjqhlsqw Qnjsl	WQVZ	Narrow	0.91
Gqzpswkl Tyfmvkxyp Pqny	TXS	Narrow	0.74

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This list features stocks that meet three criteria. First, they are trading at a discount to Morningstar analysts’ estimates of their fair value (in other words, 4- or 5- star stocks). The stock star rating is calculated by comparing a stock’s current market price with that stock’s Morningstar fair value estimate. Second, companies on this list are also rated as having an economic moat. Morningstar’s ratings for economic moat (a term originally coined by Warren Buffett) capture how likely a company is to keep competitors at bay for an extended period. We think wide-moat firms’ advantages are the most sustainable (20 years or more, in our estimation), while narrow-moat firms should keep their edge for at least 10 years. Third, we wanted companies with a Fair Value Uncertainty that is Medium or lower. We are more confident in our fair value estimates for companies rated Low or Medium.

List Criteria

4- or 5-Star Stocks

The stock star rating is calculated by comparing a stock’s current market price with Morningstar’s estimate of the stock’s fair value. The bigger the discount, the higher the star rating. Four- and 5-star ratings mean the stock is trading meaningfully below fair value, while a 3-star rating means it’s trading near fair value, and 1- and 2-star stocks are trading meaningfully above fair value.

Wide or Narrow Moat Stocks

Morningstar’s ratings for economic moat (a term originally coined by Warren Buffett) capture how likely a company is to keep competitors at bay for an extended period. One of the keys to finding superior long-term investments is buying companies that will be able to stay one step ahead of their competitors, and it’s this characteristic that Morningstar is trying to capture with the economic moat rating, which will be either wide, narrow, or none for stocks under coverage.

Medium or Low Fair Value Uncertainty

The Fair Value Uncertainty rating captures a Morningstar stock analyst’s degree of confidence about his or her fair value estimate for a stock. Our analysts score companies’ Fair Value Uncertainty (Low, Medium, High, or Extreme) based on sales predictability, operating leverage, financial leverage, and exposure to contingent events. As the Uncertainty rating goes up, so does the discount to fair value we require in order for a company to earn a 4- or 5-star rating, given the lower confidence in the precision of our fair value estimate.