Skip to Content
Morningstar

Moats On Sale

These firms have an edge on the competition and look to be trading below their fair value.
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.
Get Morningstar's unbiased take on where to invest next
Act on your investment ideas with trusted ratings, key metrics, and independent analysis available only with a subscription to Morningstar Investor. Jump-start your research with pre-filtered screens from our seasoned analysts or build custom screens based on your goals.
Get 7 Days Free
Name
Ticker
Morningstar Rating for Stocks
Economic Moat
Price/Fair Value
APA GroupAPAJFNarrow0.93
RPR MmRWJNSKWide0.95
XXB Gxm VPNPWXYWide0.95
FK&K QcCPNarrow0.75
Rqnrxxny RNGLSZRNarrow0.92
Jmn Fshmqxsl & Gvhfvflvr KmjhPRWide0.83
Hqflqdxk HFNGWWide0.87
Stsqpxc Svtscq ZwrtkkZWNarrow0.89
Ynzqxh Jdkgm JfXXCWide0.92
Bfvwz MS FNSLBHRWide0.65
Wcfbp NYLMWFTNarrow0.96
Nvlks SZP Wvxdfktv TcryfzbfGDMNNarrow0.90
Bclxftn Hqfwk NPG jd SK Qtvbxzxz Nlvmzm - Dttrk RSLYGXTNarrow0.89
Bdwlcrsg Dxzrc WwpwnGDPNNarrow0.86
Vbngpj GFLTKNarrow0.94
Wmppzljf-Pwcxp SvSds KY/BM CVFZSRMJNWide0.72
Pvyns Smknk Zjxcxnxd NtszhrKWMGVNarrow0.85
Gshykljh Ndbktlrhyqdzh Ngsdknt MxzTWFKGRWide0.94
Gpbhjfwv Bcxxhcyzlxzlk Hlqspzx Jht RGCDBTJJJYBWide0.94
Yrzkytx Dnntvyzl DmkcfnHHPRNarrow0.92
Hkvqvsfd BrsZYXFWide0.79
FSN ZchPJNarrow0.77
HWD LTCJGFKPNarrow0.88
LWZ SbjdjhRRTFNNarrow0.96
Ldxtz Bxgwfx Kmxsdgr Dpsztwqhsr KN PMQQTGVJCDNarrow0.85
Xwgg kt JmjyqnnlSYNarrow0.93
Klbf ql Mvwc CkyxwtPRRNarrow0.92
Jvvy DJ RNJGMHHYJNarrow0.78
Sdfmrb Gdmcxwxqd & CgpxyGKBNarrow0.73
Ghdldqtpq Syhmpbyz Ytg Wvlbm DDJV.XWide0.97
Vwrgssqgl Jbfdpxnw Nwd Ddkpj NZG.PWide0.96
Psrzcjg-Nfqvb Klrnsl XktQLJWide0.72
Dllzkst Yvlgdhpv Zlfqcdp WBT NLGJWide0.63
Ffphh-Yhbqth Mpfm Ccxmmtyjgz Mrc -M- Kwb GskkMX.DWide0.83
DHQ Hvqhld CfsjxnhMBHNarrow0.61
Ylzlzyxk Ddmz LRHSWide0.76
PzkpjyPkqf Dprbthlqqn Rwgckwyxwh MfpqxDBDFNarrow0.84
Hgykbqn XkhlyyLFPNarrow0.84
XyccjxXdkhn Tjgscq KJVYNarrow0.96
Sglcyms Gyttj Htvxsfc VVQMJNarrow0.91
Kmqqhcs Vncmm Zpzcwqx Hk NBSDLKXZKWNarrow0.91
Clkrr Bbjlyfyzx Ljm Pmzyp XSCVQJRNarrow0.95
Xgqzx Dvyrlbkjz Pdp Xgvsg Njv KXDSBDHYWWCNarrow0.95
Ymqkcq CZWWide0.83
Hkkpfl Bvkxwvlpycpblq Ftqqktmx RVPHNarrow0.79
Lmyryvtvw Xjzcbnxsfl Zhlqmxnkt Lydq Zrspq YMGVSNarrow0.72
Zdlrkpmvf T/L RBBLQWZTNQWide0.87
Xvxhvfl Vgbm JgzzmXGSJJPWide0.71
Jblffwlsc Ndbvysvcwl Hjwxxcmzj CX VQDKZWLHKXWide0.94
Xpbbrztwn Xqlyspbsfy Vfcxrltqd ZL Nvypm TCJFMWide0.94
See which securities made the list. Subscribe to Morningstar Investor today.
Start Free Trial

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.