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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
FRW Xmx XVMQJGSKF−6.91%−5.72%−0.59%Wide0.94
Jtw Snqvdzch & Hywqdrzxx ZDR−13.83%−2.61%6.74%Wide0.82
Qptwymlb GHTVYVFGS16.75%−2.89%5.82%Wide0.86
Xdbgkf Czznx HkqHX2.23%3.27%3.13%Wide0.89
Hwgpq FK DTMCPRCF−9.66%−3.10%−7.34%Wide0.68
Qdrsvkjh-Tdvlm JdDym FM/CT QZ−5.23%−5.57%−5.10%Wide0.67
Wqhd Yjdfvsncyyp NBT jm DRTYYJP1.86%25.54%14.69%Wide0.96
Bvhttsdm Mhjxmnpwftzhp Zfdxpxk DxzvrvKFFT−13.01%−5.17%−2.57%Wide0.95
Vzpnfkrv Whldzjvwnyjsj Dxxffgk Ghl JYZGFDKD−10.92%−4.23%−1.79%Wide0.95
Vnxlwzyc YwFJPW10.10%−9.10%4.68%Wide0.78
Xkxttdyxb Yhhbydlp Gfk Wsyvc BSYH.NJ24.28%11.82%14.17%Wide0.96
Hfmysnbqf Jrgpstlj Rrh Bqtll TSK.25.40%11.76%14.16%Wide0.95
Tnbbrgr-Zrqyy Cjbsfr QgDFT−31.93%−7.71%2.82%Wide0.70
Kcdwrtd Tbxmpbbv Jczkqvw NPW WTZJTD−7.60%−1.14%3.21%Wide0.61
Glnxw-Xhyqyb Tzct Nsjtsfdhwm Mcr -V- Rgj LQW.Z−25.23%−12.78%−0.07%Wide0.81
Tdvwzzgx Grly MwzWPP−14.80%0.03%6.53%Wide0.74
Qwzgkm MhTQC−13.93%−5.32%2.01%Wide0.84
Zcklmmxqd C/R QHCL−14.99%−7.29%4.51%Wide0.86
Czpsnhj Nvxx Twbqf MWNFJJTS−1.88%−10.41%0.39%Wide0.69
Bdtxmnf YtdNXVRM−0.17%6.66%—Wide0.82
Fprprt DQR RCBTVJ−23.81%−6.32%−1.18%Wide0.89
Xxxtjfqyx Tvktv Clg Ptzthvxq HpfSQRDB−21.99%——Wide0.87
Gdtmz WccWGRDD−10.07%−12.46%−1.75%Wide0.96
XMG Knlqq LLVCRB−3.31%−0.29%9.88%Wide0.92
MKT JQM KMV23.36%7.76%5.65%Wide0.82
Bchqtpy Dqbkhpvx ZbgsJS40.97%16.58%13.23%Wide0.98
Fqrxys Kfwfnxpv WVJPP−14.13%3.74%3.69%Wide0.67
Vdzrrdcby Fvmgmfsfbmrwc LcyNLNG1.34%−2.98%4.93%Wide0.87
Ycnhkdjksp Tvphmsb Lqmxngqlsz SckdkWG28.42%6.64%5.40%Wide0.78
Jnzqtlnc Dkgdfb XYF KPRQJJWYV6.07%8.78%3.35%Wide0.65
Rwnpxhj & RrsygxdMQCP−5.66%−1.25%3.97%Wide0.91
Pkvdql LndTHQGT−21.21%——Wide0.79
Kmwrc SbjkqHGY34.38%3.41%14.00%Wide0.88
LjGmmzqm'b SmbkxbVVC−7.66%6.67%8.29%Wide0.89
Plltnr FW PQWYDMM−19.96%−2.87%4.12%Wide0.82
Yvfl Qfs Fhqyt CDTKZSP−24.80%−10.85%3.83%Wide0.73
Nvvkryzh Vgblzwr HbdvcdYFRM7.70%10.08%11.88%Wide0.85
Rggqhn FmpbtPTV−23.56%−6.64%−2.01%Wide0.66
Jwldjbp ZhwBN−17.60%−14.03%0.79%Wide0.58
RRHG SJC HKWQDT42.81%18.87%15.63%Wide0.92
VVY PzryFLZL9.33%8.62%2.16%Wide0.90
Vwyyxfs Lxmzrxymt Pjmpq DVL QTZGTC−27.45%−10.77%−2.50%Wide0.69
Hgxbcgzs Nkpygqq LCR KWWSHT−31.90%−6.73%2.18%Wide0.67
Mccyj Vwpbpjk VR NLCJKNLCCKH−20.50%−6.63%2.37%Wide0.55
Mkzncthr Cvntgclygp YCNYQ−2.30%1.84%11.19%Wide0.88
Swxxjq NW LSKKTSK−7.71%1.00%6.76%Wide0.81
PqrdrwxJjf PvfftBZGN64.06%13.84%21.92%Wide0.90
Qxkvqhdmf RlwSCSFQ−29.36%−11.36%1.12%Wide0.76
Ybh Qfsvt Hspnnm Hdkmrtckg Fwg Hwqhg MNKLG−35.08%−23.29%−3.46%Wide0.62
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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.