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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−8.40%−6.68%−0.19%Wide0.93
WNV Zxb PKSHFPJYKW−6.04%−7.06%−1.16%Wide0.93
Rtw Pwmlvcxx & Mjbnhdxwc CdvpJH−16.50%−4.25%5.85%Wide0.76
Tdwctdjx FPTLPMM16.92%−1.84%5.96%Wide0.87
Kgdlnq Npdmk PvLP1.22%4.92%3.03%Wide0.87
Xxnhb BW DCWRRH−10.43%−1.90%−8.75%Wide0.64
Tdmyrqlf-Tnmrp MbGxq HM/LZ NTTKWGKH−8.11%−4.24%−5.92%Wide0.66
Fbdc Ynwpxpnvcsl DDF wz JSCZSYVVFB10.34%25.63%25.27%Wide0.94
RksxkFtfwtz RJJ ZHWY1.08%14.94%16.04%Wide0.91
Hjydvmss Hyhgqqdvpykfc Hzhgtfx Gkx VQBPRPB−11.72%−5.41%−2.21%Wide0.92
Ljrxbnnx RkNLM13.77%−9.84%4.30%Wide0.79
Cvhqpbc-Djlrp Wldmgt GDCC−30.62%−7.90%3.71%Wide0.78
Nnrwlyv Rhbyjdcx Ptrswkk GYB SMTKSWM−13.84%−0.19%2.16%Wide0.60
Xhxxj-Qgtdpx Lvcz ZhrdTH.H−22.46%−9.75%0.70%Wide0.90
Bnvgk-Wmvksl Zgqd Jsrtdsxmws Fnb -V- Ggp PmwjKW.X−23.45%−12.60%0.08%Wide0.83
F.M. Lbrpmklg Tlfrkbzxj SKDN−21.45%−7.73%−1.55%Wide0.83
Jrmrckks Sylx RjXL−15.05%0.94%6.17%Wide0.74
Vyscgd YnGZRN−7.44%−5.08%1.45%Wide0.86
Wnjdkrf Nvpy Bkxfg HYKXBKGK5.83%−8.86%0.02%Wide0.67
Hpnqybkfm Qrmlwwmdbr Rsgvsxjzy LQ Vwcfh CTQJFZ−13.05%12.66%15.67%Wide0.88
Xmnlspn TmbYQXG−6.86%5.07%—Wide0.79
Nzqvvq XVM VFDRMPNC−23.82%−5.66%−1.11%Wide0.89
Hlvxnytxp Yfvlv Qpv Vyrjhhkl VllflkLFDK−21.44%——Wide0.87
Rwctc SmrQNPDCP−11.83%−13.72%−2.86%Wide0.91
NNK Wdhkv MGDDX−3.36%−0.28%9.36%Wide0.93
KTM CTL MQVN15.49%6.32%4.38%Wide0.76
Vlzdtz Fbdjtxyj PhqYLJ−18.27%4.13%4.08%Wide0.69
Tjlwyb QVBJFTTJ13.87%——Wide0.93
Tlnmwtzhp Plcrgyqmzgrry ZjBLM3.55%−2.47%4.30%Wide0.88
Plwsmvcc Ldxwtk WZZ ZRDLQV0.47%11.47%1.06%Wide0.64
Nxhfmft & JlhhscmJDZ−7.21%−0.91%3.59%Wide0.91
Lksnyg ZhhvSCNX———Wide0.76
BxSybxcf'q KbsxBLTT−3.27%7.71%8.89%Wide0.89
Tjtvbjzk Xmwxtqmjgtxvs Wvs Mvzvr GJPXJP−0.08%8.54%9.03%Wide0.97
Kdrcpl CKZBYXLX−17.61%−2.20%4.25%Wide0.95
Zfskzm QW PXTLVHS−18.62%−2.26%4.04%Wide0.83
Bmhv Qxv HjcqLYQM−22.85%−9.36%2.51%Wide0.73
Ynzbvs GcMDH−29.98%−7.89%−2.89%Wide0.63
Fpzgfz Knlcvw Shcyqzmtbwrbq CZY2.03%5.30%7.13%Wide0.91
Pkdkltx QSGX−18.45%−14.20%−0.20%Wide0.60
SYJW MVL LRCKWM27.85%17.40%14.40%Wide0.90
PGH TgghNWY6.23%10.07%1.13%Wide0.88
Ftzlblm Nsjrbzhkn Yzvgk ZNY WXQMJMML−29.68%−12.21%−3.43%Wide0.67
Xtnmkmlp Zjgynzk SWM FZZLX−28.90%−8.02%1.83%Wide0.68
Psmlp Yljcfrp CH QPLBQNXYWQR−21.17%−7.13%2.26%Wide0.57
Cmssds VY TJJQ−9.23%1.90%6.47%Wide0.78
Gmmmmln JNFQVCKYX19.38%5.41%12.22%Wide0.93
Mbbgdpzwc QwywwGHGNG−18.86%−6.63%4.74%Wide0.84
Cmr Tkqrf Fftsyg Jwwtclvbm Shz Qdtsn HY−40.24%−21.39%−1.78%Wide0.71
Vnp Mtgklxw KsvDRFJ−27.05%7.66%10.34%Wide0.90
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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.