Morningstar Advisor - April/May 2009 - 74

By the Numbers: Stocks Undervalued Stocks with Wide Moats Undervalued stocks with significant competitive advantages can make attractive long-term holdings. With that in mind, we scoured our 2,000-plus stock coverage universe for highquality stocks (those boasting wide economic moats) that are trading on the cheap (rated 4 or 5 stars by our analysts). Our analysts award wide economic moats to companies that they believe possess durable competitive advantages that are likely to confer economic profits well into the future. In addition, our analysts estimate the fair value of each stock based on in-depth fundamental analysis. When a stock trades at a suitably wide discount to our estimate, we award it 4 or 5 stars. The wider the discount, the higher the star rating, and vice versa. There were 140 stocks that fit that profile as of Feb. 28, 2009, 17 more than made the list Dec. 31, 2008. Name Industry Market Cap ($Mil) EPS TTM P/E Ratio (trailing) Revenue Growth % 3 Yr EPS Growth % 3 Yr Dividend Yield % Current ROE % (trailing) Pg# 3M Company MMM Abbott Laboratories ABT Adobe Systems Inc. ADBE Advisory Board Company ABCO Alcon, Inc. ACL Allergan, Inc. AGN AllianceBernstein Holding L.P. AB Altria Group Inc. MO American Express Company AXP Amgen, Inc. AMGN Applied Materials AMAT AstraZeneca PLC ADR AZN Autodesk, Inc. ADSK Automatic Data Processing ADP Avon Products AVP Bank of Montreal BMO Bank of Nova Scotia BNS Berkshire Hathaway Inc. B BRK.B Biogen Idec, Inc. BIIB Blackrock, Inc. BLK Boardwalk Pipeline Partners LP BWP Boston Scientific, Inc. BSX Bristol-Myers Squibb Company BMY British American Tobacco PLC ADR BTI Brown & Brown, Inc. BRO Buckeye GP Holdings L.P. Trust Unit BGH Buckeye Partners, L.P. BPL Cadbury PLC ADR CBY Campbell Soup Company CPB Canadian Imperial Bank of Commerce CM Capella Education Company CPLA Caterpillar Inc. CAT Central North Airport Group ADR OMAB CH Robinson Worldwide, Inc. CHRW Cintas Corporation CTAS Cisco Systems, Inc. CSCO CME Group Inc A CME Diversified Drugs Development Tools Consultants Drugs Drugs Money Management Tobacco Finance Biotechnology Semiconductor Equipment Drugs Business Applications Data Processing Household & Personal Products International Banks International Banks Insurance (General) Biotechnology Money Management Pipelines Medical Equipment Drugs Tobacco Insurance (General) Pipelines Pipelines Food Mfg. Food Mfg. International Banks Education Construction Machinery Air Transport Transportation - Misc Business Support Data Networking Securities 29,916 70,809 8,374 218 23,739 10,925 1,001 30,208 13,842 49,952 11,761 45,320 2,668 16,692 6,800 10,819 20,761 110,260 13,260 10,703 3,455 10,185 34,661 47,019 2,279 376 1,696 14,959 9,587 11,302 897 13,516 289 6,669 2,949 83,995 11,914 4.89 3.12 1.59 1.52 6.63 1.89 3.18 2.36 2.33 3.76 0.70 4.22 1.65 2.38 2.04 3.76 3.05 168.25 2.65 7.91 1.80 -1.36 2.63 2.28 1.17 0.92 3.78 0.67 3.08 -1.20 1.66 5.66 2.26 2.08 2.10 1.25 15.36 9.29 15.63 10.50 9.81 12.44 20.20 3.83 3.51 4.20 13.02 13.16 7.53 7.69 14.58 8.62 7.55 9.25 15.24 17.36 12.24 11.72 — 11.57 15.70 14.39 16.86 12.48 21.19 15.15 — 33.44 4.35 48.08 20.20 9.68 11.63 11.88 6.08 9.75 22.11 15.63 12.68 23.41 2.03 -38.60 5.63 11.87 5.15 11.32 20.58 12.70 9.47 1.22 4.52 16.71 19.15 88.33 11.88 8.61 5.36 — 14.05 17.09 17.09 9.86 6.34 -33.22 22.19 12.20 12.45 14.67 8.69 16.82 34.51 6.66 13.04 10.14 12.13 23.31 7.89 -1.72 -22.09 -7.77 15.93 -1.39 89.86 17.77 — 4.07 -6.70 -1.07 21.61 77.98 51.40 — — — — 13.23 — 3.28 -9.26 20.94 — 24.51 11.90 -53.69 21.49 8.36 14.62 32.76 4.66 3.14 — — 3.20 0.56 24.61 11.49 6.09 — 2.71 6.54 — 3.63 5.02 13.10 6.88 — — 3.44 9.62 — 7.08 5.89 1.80 6.74 9.77 — 3.52 14.61 — 7.21 9.65 2.30 2.44 — 2.59 32.00 27.69 19.24 20.84 53.67 15.48 — 60.13 28.10 22.16 12.50 39.85 29.90 24.45 126.26 11.70 16.87 6.52 13.81 9.00 — -0.64 46.02 35.20 14.48 — — 9.88 89.67 -19.49 19.34 47.03 1.48 33.43 14.40 21.53 5.49 58 59 61 67 74 Morningstar Advisor April/May 2009
Morningstar Advisor - April/May 2009

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