adidas AG ADR

These wide- and narrow-moat stocks are each up more than 20% this year and are undervalued by our metrics.

The narrow-moat company's strong association with the expansive global soccer market should continue to aid its brand equity.

Innovation and key sponsorships should bolster its leading standing.

We plan to raise our current fair value estimate materially to account for faster sales growth, gross margin expansion, and better controlled expenses.

Discretionary companies have benefited from decreased uncertainty post-election as consumer expectations are set with the new administration.

Election results haven’t changed the cash flow prospects of our favorite names.

These stocks are all expensive based on their prices relative to Morningstar’s fair value estimates.