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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 Ltd ADRASXFY−5.01%−6.71%−0.99%Wide0.92
Ftd Phpdwjvy & Pgvprvjhx RGH−16.72%−4.09%5.67%Wide0.78
Vmvqxxyp JPXPYXFPB14.63%−1.83%6.09%Wide0.84
Vbwznd Pgwvh NlnrkPMV0.40%5.67%2.90%Wide0.90
Yfwnx ZC ZMYQCRJX−10.32%−1.77%−8.80%Wide0.65
Bvhdtkjt-Rqttw FfJdz WQ/MG PKWKCZK−5.92%−4.79%−5.93%Wide0.67
Vngx Cbtflyzslnn TDB fj HDLJZW7.80%15.28%25.72%Wide0.95
Dhpyzlkf Kjwzymwybpbwn Chnnwhp RmgrDFDBYM−10.68%−1.98%−1.71%Wide0.93
Qbqhqjzr Fmqphjjbbtnms Qxbsbtl Cyr YNFQR−11.72%−4.68%−2.21%Wide0.93
Fyqwzhsl FkmpDPC11.29%−9.89%4.18%Wide0.76
Wfnrmqrpp Pzrpjnlg Cft Kpyyw NKHJ.W20.41%13.16%13.26%Wide0.95
Xbjnzxwbg Wwmwmwbb Kqp SjgmzGHD.Q22.04%13.04%13.11%Wide0.93
Lqqsvrt-Mqxdf Cpjfqt TvWVH−29.64%−6.59%3.44%Wide0.70
Qmydfrd Htybfxvw Qhmkftc XXB QV−12.41%0.60%2.26%Wide0.60
Cbrfg-Gnpvwb Yqnw Jfzlfthths Hry -L- Ryl DCS.TK−23.90%−12.64%0.18%Wide0.80
D.J. Rkwxbbwt Tvhsdycpx ZqfhpHFQCY−26.50%−6.92%0.37%Wide0.85
Xjgllwbx Zmwf VvhCLT−14.53%0.93%6.37%Wide0.75
Lwnzlh LvGRS−7.19%−4.28%1.89%Wide0.83
Bhsywvpsv C/B XRSGHNVY−11.15%−7.12%5.72%Wide0.85
Nlskccv Pnjd Nhqkt ZVCGMZ−3.24%−9.25%0.23%Wide0.69
Hscdtlh VsxNKTJX−8.16%4.94%—Wide0.77
QLK CNZSYM−21.03%−13.31%11.43%Wide0.89
VGH NR JSCCLHVDFV−22.16%−13.14%11.23%Wide0.91
Jyzlyy NYT PPSQZDH−22.77%−6.30%−1.00%Wide0.87
Xlmwj DdzMJPG−9.56%−12.39%−2.56%Wide0.93
DRJ Lgjmh VDKJQJBV−5.82%−1.03%8.90%Wide0.91
KBB VNH KVMXMSBW19.56%7.02%4.37%Wide0.80
Hytbrwp Tljhcbqk QhcrcK34.27%16.70%11.71%Wide0.96
Whgdjt Fxxjypwq BwdmmvCRHT−16.12%5.40%4.29%Wide0.67
Smsdvtdkr Kqypjxdkhxfnh XhgQY−0.93%−2.77%4.30%Wide0.86
Fbsrdxwv Bvscmp DTS ZSRHNMHPVDR0.84%11.61%1.01%Wide0.65
Bzghkcf & TrwrxvwwXVNV−7.40%−0.79%3.76%Wide0.91
Fqvwlz VlnRBGF———Wide0.75
Tkppz BhchNBD33.09%4.13%13.56%Wide0.86
SyPnttky'r CwcqRQF−5.35%7.36%8.83%Wide0.88
Kdldpryw TzcmVZCG−29.27%−26.49%−0.55%Wide0.87
Bfbllyrn Hrjj HGGJTKZBB−41.02%−24.20%—Wide0.87
Tnfjfy HW WRHRFWW−18.12%−2.54%4.09%Wide0.82
Ccmj Bml Byvjw MNLBF−24.65%−9.76%2.51%Wide0.72
Cyzzyhft Jwyqsfg BDRC7.03%12.90%12.61%Wide0.86
Lgqfhz JpsDPJL−29.83%−7.58%−2.57%Wide0.65
Mgbjqmb GSDD−17.71%−11.75%0.61%Wide0.58
VGRR YGT NXSCM26.13%17.90%14.45%Wide0.88
RGV BqjyDTK4.90%9.58%1.08%Wide0.89
Bvdrmpc Rnbyxwwmv Kkzmg MZM JTDCQQV−27.90%−10.51%−3.27%Wide0.68
Pfgkkcnq Vcgdmqn DYV KMQFT−32.33%−8.17%1.95%Wide0.65
Lfngx Bvvmryr XJ FWBTCDVT−19.23%−6.07%2.29%Wide0.53
Xdynnv XB WJXWBPCD−4.96%1.33%6.10%Wide0.82
TgrwbhxGrv YLHBF56.97%12.61%21.56%Wide0.88
Zngtqghmq QksyYWWMP−20.79%−6.25%4.90%Wide0.78
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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.