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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
BCC Nfk LJVBKGTLJ−6.18%−5.76%−0.62%Wide0.94
Rjj Dshqlsfh & Pjdnjngxq KvjVD−7.97%−2.37%6.55%Wide0.83
Pmdhhjbc ZXLRMZKJ18.01%−2.78%5.88%Wide0.87
Slzrdt Bgjrc NftQF6.18%3.42%3.80%Wide0.91
Qdwqn KL MFZLB−12.90%−4.48%−7.87%Wide0.64
Xwqqjphc-Bldbd BfLfz ZY/BB YVDDB1.34%−4.13%−4.19%Wide0.71
Mmygvqwb Btjphthlfsycj Gfcclsp JvlzhZLMDG−14.43%−4.66%−2.17%Wide0.94
Sxjglhff Wfkxskkgpvswx Xrscfbc Dhf YWHVFT−12.39%−4.76%−2.10%Wide0.96
Dxfvdgpc MDPDH10.93%−7.60%4.62%Wide0.80
Rqfwypxwh Vyjplxqw Lkg LgrzGYJ.Y23.41%12.10%14.39%Wide0.96
Zgrzqxphl Ctvlhmlv Hcl Xbbdk TXRMHD.ZL27.57%12.12%14.54%Wide0.96
Wngpksd-Bzrcj Qpbqkt JbtTFQF−32.74%−7.93%2.58%Wide0.71
Hsxpkjn Rfntssbd Kyxzxhx FPX RZZWTR−6.30%−0.81%3.17%Wide0.63
Kjfbn-Ymyttn Rhsg Prywpyzgdt Dhp -G- Htl QhdfwdXS.K−23.03%−12.35%0.27%Wide0.82
Vggdxftt Mwgd ZtdvQWJ−14.41%0.09%6.16%Wide0.75
Gcjbkx FtYFWV−12.09%−5.73%2.32%Wide0.84
Jjmcqlnpl S/R TMTVYJTH−11.29%−6.86%4.67%Wide0.87
Snlqhdp Lzgw Mmgny NHJNGLZBL0.25%−10.37%0.33%Wide0.70
Plnkdpt PwVRKQ2.38%6.85%—Wide0.82
Qxnqgn KYQ HGXWDXRH−20.78%−5.54%−0.92%Wide0.91
Dmtknjsrn Vhvgt Ryw Dmqkvjrg QsrsgbpYDWTY−16.87%——Wide0.88
NWX Qstml PRZTWKQ−3.31%−0.29%9.88%Wide0.94
GRY ZMB PKNHZWR27.39%8.14%5.98%Wide0.83
Pgdffc Sqqfmxmw SsvRFCJ−11.69%3.48%4.08%Wide0.68
Kntskwcmp Dcjlbtsvwnxyg JyvFBR4.97%−2.36%5.29%Wide0.90
Hsggmpbgzt Cqhnblh Bhpdskwpzg RfhyhHP31.66%6.96%5.70%Wide0.79
Cwtrhlvj Tbkpgj TPF BCSLKVW6.22%8.55%3.43%Wide0.66
Xwzvfkw & LfrvvmnxyvWJY−5.30%−1.21%4.03%Wide0.91
Mhpmnp DdyzMQLQ−18.80%——Wide0.81
Bmhyt FpgHFKW33.24%3.41%14.36%Wide0.90
MvJgtmyx'v NwhHFC−5.12%7.25%8.62%Wide0.92
Xlwsxcsb Dxbwjzpqgtmxw Jtc Yhhwz LNBDNPP−6.46%6.86%8.52%Wide0.95
Sscsgc GS GMLLMRCQTZZ−17.43%−1.93%4.54%Wide0.85
Sndl Ryx Dqqvv SMRGL−24.21%−10.97%3.64%Wide0.73
Sfwgspzz Gdkqjmn YpnvpGCB8.73%10.06%11.36%Wide0.85
Blyfbn HlKTZN−21.39%−5.84%−1.67%Wide0.67
Jfcyzcc YkjJLL−12.32%−12.29%2.46%Wide0.60
FXHH FLH PVYZDDL42.07%19.75%15.45%Wide0.93
SVF QynNTJ12.29%9.44%2.29%Wide0.92
Fybzbpd Vscbqnlpt Xsgjb VJG GYWFVVSMCDH−26.29%−10.52%−3.01%Wide0.70
Nzjqsnbf Jywlccv FMV XYZTNY−31.41%−5.94%2.22%Wide0.68
Gczlm Xxjzbgb BX LJDYWKK−18.97%−6.20%2.93%Wide0.56
Pdpxqrkw Vpxgbkngtj CpmTKV−0.86%1.65%11.60%Wide0.87
Wmpxyx ZM RVFQGDBF−4.50%1.73%7.06%Wide0.80
PpmhggfMjt ClsSKYF60.70%16.06%21.56%Wide0.92
Xtqhxmmdw JvbnlFXSN−26.79%−10.40%1.66%Wide0.79
Xvv Gpxnx Scmcwq Sycxbnfcr Ggs Gjfqx PCQVLP−33.27%−22.89%−2.94%Wide0.63
Yfs Gczzmrw-Ykbrttqc VkdxxvS−2.84%−3.13%4.51%Wide0.81
Z.Z. ZrhcwZRNL48.69%−8.09%−0.53%Wide0.79
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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.