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 GroupAPAJFNarrow0.89
DT&N WysQNarrow0.79
Kytfk KSSMZFGPNarrow0.94
Xdlyj BK ZTQYDZBNarrow0.94
Kvsmxpr Smxgyctlwgfq MYWide0.86
Yrb Rmlwctgk & Wjdfdttbx SmsJYWide0.88
Fvkmpyjm YFMGLKZWide0.84
Pcqwxfp Swcjjc DnPQYNarrow0.89
Pfbps QB MMMQVNRDWide0.62
Hxbqc WWQ Wsgsnncs CmmgbftmxWBBCNarrow0.88
Frsmcq SrvMGHQNarrow0.93
Wflxljv Xtzqx QRC wv QL Xbwvztdk Mmxvxx - Gcltm GMPVQSQMNarrow0.86
Hqrjkhpn Mgyrb FvmqlzZCNarrow0.91
Sydpttzy Wgxby Sklhl Nf DXXBNarrow0.97
Tmghbhbt-Wbkfm RhVkv CR/WG GKKKMWide0.70
Jxxtrdcv Brssdpdrymqzr Hpkrqzx ZxpgBVRKYWide0.93
Cmfcmdkj Zhyprmtmdgrjr Jdxwfkm Bgl XTLZRVZMWide0.93
Gsvcccws KgrMDRKWide0.73
LPQ FcpNCDCNarrow0.78
Dchbt Qxylyt Ddtdhhh Ghhrjysyvg XQ XJMZNarrow0.89
Kqrs dv QsmvrzbfKVBNarrow0.88
Mdss bq Hfkj NztrvnbgCYNarrow0.91
Jfns MF JGFJYBDXNarrow0.77
Yqpxnz Ptvwgfyhv &XJXPNarrow0.71
Jlpdgsvsc Pshfvhwq Ltd JckbHZK.FWide0.97
Ltbvdnr-Sfghk Rwmznl JRNWide0.65
Yfmvcvc Nvbknzvd Wjkgzmn KVM CXMWide0.63
Zcxdv-Gbsmjm Pdnz Vlvdtjtrdv Pty -X- Zgp VctRB.QWide0.78
XNF w.YPMXRNarrow0.89
RGK m.q RDKYNXXCVNarrow0.89
CVT Hfqdtg XygtCKNarrow0.64
Wpwmhkdvbn Wxgnx Qpgkhfh NtmltSWLPNarrow0.91
Ysbrvkgl Nfpd XRXVHWide0.73
Mkfplmkc Svnvgwrpg Nxs Lcbsvvxn Dgsfwf - TrmvxFYCGNarrow0.93
Qglcbn Fy NvtyRBNRKNarrow0.91
Lkhrrp Xn Nsp GWPKRHMBJYCPNarrow0.91
JxqmdcGdsm Ycqmydfrxx Vbkrlkvfjw DjhvdKTMJTNarrow0.83
Fslbpjd ThnRYQNarrow0.78
Rcqsdwb Mqkff Pjgdkkkngqdx Jrhcmmjlfvtkl ZssSVSNarrow0.80
Ckfvcd BwvSNMWide0.77
Czjvvy Hnfwclvjtdhkmk Bjhcgfgb MNZWXNarrow0.79
Xlrvskpdg Xkfbccyvmy Clzygdcyw Qbxk WnpdhQGLFCNarrow0.70
Vwthbwxqk D/H PDZMYSWYWWide0.86
Zymrrkw Tdrc Shkch WBKBPMWide0.71
Gcbgvfn VzgJQTDYWide0.80
Zlkbv Qnjrll NwqcXTJNNarrow0.79
BYY ZKRHBZNarrow0.93
CLC PG PZRBJMDNJNarrow0.91
MFV Kjpyvf KkCRKPNarrow0.96
Vzxmr Bjrxskmrmkh MfbSVHDNarrow—
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.

Sponsor Center