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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%−7.24%−0.20%Wide0.91
XZX Lnm KNPJDZJ−4.81%−5.98%−0.87%Wide0.91
Qqq Xmcrhfmv & Jnkwjhxmz NTVVS−13.95%−2.91%5.66%Wide0.81
Jfflxlnv LDFGJGC14.45%−2.05%4.98%Wide0.85
Rhxdhg Lyrhy QqsH2.02%4.22%2.72%Wide0.89
Tkjtz KL KTVMDBCZG−10.38%0.71%−7.93%Wide0.68
Ygwrfvzg-Yttmf DmQvc SQ/CV YHPLQW−4.88%−4.42%−5.86%Wide0.66
Fnvn Xftyhmhmylk TRV ms RZSH7.35%29.49%25.72%Wide0.96
Hdmzcqwk Chntlcxltlprb Crhhmcc SgbPSCGN−14.58%−3.43%−2.57%Wide0.94
Hbtwdgbc Pnjzftgnrvzxn Glfpnwj Xsd DCDQMYZX−8.42%−3.92%−1.50%Wide0.94
Mcbgpyjd JYKGP11.09%−9.21%4.02%Wide0.78
Kypsdctpy Bsdfzfpf Rbl Pyhdy QNPZ.WN23.41%12.81%12.97%Wide0.94
Nbrxvnsjy Tjbpsjgn Yhs YtcqKGS.CX24.02%12.82%12.89%Wide0.94
Ycjmdfn-Lhlcl Swdkyw LstzYMHC−30.48%−7.27%2.20%Wide0.70
Fsngwmx Knmlmjfd Ysmqldv QGL QMTCBX−9.28%0.40%2.77%Wide0.61
Pvffy-Xcwfsn Bfps Qdphpqmmmh Kyv -R- Mtn HscYJ.−24.18%−12.90%−0.12%Wide0.81
Ksglcjty Txnf CzrYMH−15.01%0.63%6.39%Wide0.74
Hrrljg DvfFPR−18.55%−5.51%1.68%Wide0.82
Jxbcyjssb J/W CXJCTW−12.92%−7.14%5.46%Wide0.88
Jdntvvj Gbpf Kdqbc SRKHHMX−2.49%−9.46%0.23%Wide0.69
Yfrjgkq NvSJR−3.68%5.82%—Wide0.82
Vnrkyn BKZ HWMSCNMX−23.85%−6.15%−1.50%Wide0.88
Sknyp MbJVYBWT−8.40%−11.44%−2.24%Wide0.95
KNL TBZ STLLLV22.06%8.01%4.83%Wide0.81
Wtwtjwd Sclsvlxq ZdC39.76%16.55%12.05%Wide0.96
Jykghp Tntnqlnv MGN−14.66%3.80%3.29%Wide0.67
Zxdwkcgps Cyrgrmtrklfdd LyssRY1.05%−2.34%4.37%Wide0.87
Ygqrqsjpks Lwykrys Xfhggbjxnj VytCK27.67%6.62%4.87%Wide0.78
Szdpjtqx Dfkpyp QBK WHXSJN2.65%10.52%1.39%Wide0.65
Dmgqxhr & VylxjYXH−5.43%−0.49%3.74%Wide0.91
Dpvbyb NCMLC———Wide0.75
Qwwfy BwrjBGWZ31.52%3.78%12.77%Wide0.87
FxCfrxtf'v PszlVTQX−6.27%6.91%8.55%Wide0.90
Lwnmpc GZ QLKNNBXW−19.90%−2.52%4.03%Wide0.82
Wgwl Hkq FtkfxZJB−26.17%−10.30%2.72%Wide0.71
Czcklvyj Yyvxntm XvdqcSKTF7.41%10.70%11.39%Wide0.85
Fdffjp YrtNVCM−23.38%−6.42%−2.26%Wide0.66
Vmntssh JdgBSF−18.97%−13.73%−0.95%Wide0.58
VYWN FWD GMSSKWDB36.18%18.79%14.83%Wide0.90
NBC NhgfTXXN6.79%8.68%1.01%Wide0.88
Pmxkvbn Ypvynqhrw Lhykk ZKZ JNFCKJJTSC−28.23%−10.83%−3.13%Wide0.68
Gqpgpvdf Jrlcfcx YMY DNKLLKG−34.00%−9.02%1.16%Wide0.66
Lyhyq Qnybddy RK WKYPGTMVZY−21.14%−6.59%1.65%Wide0.54
Lcnsmw MV FJVVMQ−6.10%1.26%5.91%Wide0.80
QhgmwqtBjr GKRKJ63.96%13.49%21.69%Wide0.91
Rjjlchcng HzBTJP−27.56%−11.86%1.11%Wide0.76
Rcq Wxkmn Lzrzbd Lchzrvdlz Vtq Jvztn XPKSV−33.11%−21.39%−3.80%Wide0.63
Hmm Fykfspp GZK−26.07%8.03%12.18%Wide0.95
Zrk Pkdmbpj-Wpxgwyff JDT−3.63%−2.79%3.51%Wide0.79
Z.F. TqpdmsztlBCM45.47%−7.42%−1.20%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.