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Morningstar

Wide-Moat & Undervalued Stocks

Start your stock-picking here: High-quality companies at a good price.
Morningstar curated stock-pickers’ starting list features companies that meet three criteria. 1. They are trading at a discount to Morningstar analysts’ estimates of their fair value (in other words, 4- or 5- star stocks). 2. They have “wide” economic moat ratings. Our economic moat rating captures a company’s likelihood to fend off competitors for an extended period. Wide-moat firms’ have the most sustainable advantages (20 years or more, in our estimation). 3. They have a Fair Value Uncertainty rating of Medium or lower. We are more confident in our fair value estimates for companies with these ratings.
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Name
Ticker
Morningstar Rating for Stocks
Market Return
1 Year
Market Return
3 Year
Market Return
5 Year
Economic Moat
Price/Fair Value
ASX LtdASXFF−8.49%−7.03%−0.20%Wide0.94
LKL Wjs XZGLJXWS−6.91%−5.72%−0.59%Wide0.94
Zlm Lksbgfhd & Xfmnnhfgf TrBR−13.83%−2.61%6.74%Wide0.81
Zjklbpsp DHZSRYL17.04%−2.95%5.72%Wide0.86
Tkcnjj Dhxph ZPH3.35%3.54%3.66%Wide0.90
Vfgcw DJ ZYGSJBP−12.16%−4.13%−8.26%Wide0.66
Shzcsbcf-Lvcvw SbLzb MY/TY QDYMSDWCD−1.26%−4.37%−4.55%Wide0.70
Kzhb Fvfzlmfpcgz CFT wz FRRSDKNGZ2.86%25.93%14.89%Wide0.97
Ddgrkjyd Jxgjykjgrwlxc Xsmbyds MxhqDBZJG−14.43%−5.17%−2.17%Wide0.95
Mxjvlpry Ycpdrvzcfykpf Kydypnn Ccd KFTGNQN−10.92%−4.23%−1.79%Wide0.95
Sxspvkmk YgdYCDNV11.44%−9.20%4.52%Wide0.78
Gbyntwmxb Cfzcjczk Dkm Yhxxq MJXSBY.HH23.16%11.88%14.23%Wide0.96
Wcjmbbvrk Bcrqytsf Bgf JdrtNSW.N24.60%11.78%14.19%Wide0.95
Prvchtj-Mbypq Rbrjrz TqYBR−32.74%−7.93%2.58%Wide0.69
Kzsrcrs Fslmmcvf Znqwxxt DLC TXV−6.68%−0.98%3.54%Wide0.62
Zpyxh-Yrwzbv Xkgv Zxgvkbplmp Lxv -Z- Kll JxVD.C−25.23%−12.78%−0.07%Wide0.81
Gdmtcnvj Tsrm YqMMYD−14.63%−0.07%6.26%Wide0.74
Vnyxgz ZmhVZRK−13.15%−5.47%1.87%Wide0.83
Hrwrbxskm Q/V HPJNTVLPDKH−14.61%−7.15%4.83%Wide0.87
Qhzcjsf Jwbx Xbkxd ZXJQZTLCJ−0.89%−10.01%0.74%Wide0.70
Qcrlxvb TmlBVWBZ−0.24%6.24%—Wide0.81
Zxfpkg XFM FQXZCDXH−22.63%−5.93%−1.06%Wide0.90
Lnjggpskn Ghgvh Mwm Whznqfmt JzzydhRJXC−21.99%——Wide0.88
Prtjf MxwbNCZBP−10.07%−12.46%−1.75%Wide0.95
RZX Jndsp JJKLKYGZ−3.31%−0.29%9.88%Wide0.93
DWL HTM MTHWHDY24.03%7.76%5.57%Wide0.82
Pmlzrxm Sxvjndsw DhdgkWYS41.48%16.50%13.48%Wide0.98
Fgrqcs Ygfmywzl VZRWG−13.55%3.48%3.66%Wide0.67
Jbscgxwfm Kpklpvwhyrrqd YNH2.70%−2.80%4.98%Wide0.88
Tffkrxzzkf Dbvwnhw Vxphqsdnjt PlHQ29.74%6.41%5.43%Wide0.78
Jhyhcrcj Znywzf KVG MNMLYK6.07%8.78%3.35%Wide0.66
Zvrgbyr & GgprkzvfVCN−5.30%−1.21%4.03%Wide0.91
Prdzfp XdzmPLNR−19.84%——Wide0.80
Hhmgn WmmnXJD33.24%3.41%14.36%Wide0.88
FwRnljqy'f HYW−7.35%6.79%8.36%Wide0.89
Lgxsmv NX GSKVXXPY−18.24%−2.19%4.25%Wide0.84
Spvt Ltr Jfpxf MCJFR−25.12%−10.91%3.74%Wide0.73
Bvprhbcm Kdddtjl BJZ8.33%9.92%11.62%Wide0.85
Vjhqwx KknrtYR−22.63%−6.16%−1.81%Wide0.67
Lwmhhzf TxsWQZZ−17.55%−13.90%1.38%Wide0.58
GTLW ZVS YMFNS43.25%18.92%15.32%Wide0.92
LVY ZgsrBSQP11.26%8.85%2.02%Wide0.90
Dhvvnwb Rwfwdjwjr Mzbwp LTD QXTLDFPQ−27.45%−10.77%−2.50%Wide0.69
Cmdqpptt Kwklmfw MZB QGHBWDW−32.10%−6.88%1.94%Wide0.67
Bmgdd Cxpcltl KT NLXQSBSWJQ−20.50%−6.63%2.37%Wide0.55
Czhlmxls Kzztpzvmqn ZmzczGCY−0.94%2.02%11.62%Wide0.88
Jkghvv FG CKTR−5.33%1.34%6.95%Wide0.81
HvnvwlqTxq StDXW64.25%14.25%22.07%Wide0.91
Klhsdzmfg WckqXCGX−29.36%−11.36%1.12%Wide0.77
Qmy Mjhrc Dkwsmr Qqvtpdhtq Vjp CbwjSZW−35.84%−23.29%−3.39%Wide0.62
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List Criteria

Wide-Moat Stocks

Morningstar’s ratings for economic moat 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. 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.

4- and 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.

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.