Morningstar Advisor - October/November 2011 - (Page 76)

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 high-quality 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. 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 84 stocks that fit that profile as of Aug. 31, 2011, 49 more than made the list on June 30, 2011. Name Industry Market Cap ($Mil) EPS TTM P/E Ratio (trailing) Revenue Growth % 3 Yr EPS Dividend Yield ROE % Growth % % Current (trailing) 3 Yr 3M Co MMM Abbott Laboratories ABT Adobe Systems Inc ADBE Amgen Inc AMGN Applied Materials, Inc. AMAT AstraZeneca PLC ADR AZN Autodesk, Inc. ADSK Automatic Data Processing ADP Avon Products Inc AVP Bank of New York Mellon BK Berkshire Hathaway Inc B BRK.B BlackRock Inc BLK Boardwalk Pipeline Partners LP BWP Campbell Soup Co CPB Cisco Systems Inc CSCO CME Group, Inc. A CME Comcast Corp CMCSK Compass Minerals International, Inc. CMP Corporate Executive Board Company EXBD Credit Suisse Group ADR CS Dun & Bradstreet Corporation DNB Eaton Vance Corporation EV eBay Inc EBAY Eli Lilly and Company LLY Equifax, Inc. EFX Exelon Corp EXC Expeditors Intl of Washington, Inc. EXPD Exxon Mobil Corporation XOM Fiserv, Inc. FISV Franklin Resources BEN General Dynamics GD General Electric Co GE GlaxoSmithKline PLC ADR GSK Google, Inc. GOOG Graco Incorporated GGG Diversified Industrials Drug Manufacturers - Major Software - Application Biotechnology Semiconductor Equipment & Materials Drug Manufacturers - Major Software - Application Business Services Household & Personal Products Asset Management Insurance - Reinsurance Asset Management Oil & Gas Midstream Packaged Foods Communication Equipment Financial Exchanges Pay TV Industrial Metals & Minerals Business Services Banks - Global Business Services Asset Management Specialty Retail Drug Manufacturers - Major Business Services Utilities - Diversified Integrated Shipping & Logistics Oil & Gas Integrated Business Services Asset Management Aerospace & Defense Diversified Industrials Drug Manufacturers - Major Internet Content & Information Diversified Industrials 57,905 80,849 12,233 50,844 14,572 63,795 6,289 24,317 9,527 25,430 167,635 29,137 5,012 10,227 87,013 17,760 58,968 2,445 1,113 34,270 3,238 2,840 39,165 42,985 3,896 28,555 9,512 357,317 7,807 26,050 22,827 171,725 108,187 171,938 2,346 5.89 3.30 1.87 4.81 1.45 5.78 1.04 2.52 1.73 2.16 5.22 12.42 1.26 2.45 1.27 17.79 1.37 4.59 1.14 2.81 5.16 1.57 1.32 4.26 1.84 4.00 1.75 7.58 3.04 8.42 7.01 1.27 0.71 27.88 2.17 14.10 15.92 13.48 11.51 7.79 8.20 27.10 19.84 13.09 9.51 13.99 13.26 19.96 12.99 12.30 15.02 15.41 16.45 28.99 8.24 12.97 15.53 23.31 8.81 18.76 10.78 25.97 9.76 17.83 14.25 9.09 12.38 37.17 19.42 18.18 2.91 10.71 6.36 0.63 -0.64 4.02 -3.50 4.03 3.01 6.98 4.82 21.14 20.19 1.30 4.66 19.59 7.08 7.63 -6.25 -7.24 1.59 1.14 6.07 7.39 0.30 -0.48 4.46 -1.79 1.98 -1.93 6.02 -4.50 7.82 20.90 -4.01 0.18 8.62 6.70 19.32 -16.45 14.30 -15.09 2.50 4.73 -2.03 -2.48 11.90 -8.36 3.86 4.37 -1.40 15.83 22.89 -18.61 -17.63 -0.07 9.72 75.87 19.11 1.46 -1.50 9.53 -5.11 7.94 -3.44 10.26 -21.24 -30.17 25.56 -10.02 2.67 3.54 — 0.51 2.71 5.78 — 2.86 4.11 2.13 — 3.15 8.25 3.59 0.76 1.92 1.93 2.34 1.61 4.06 2.17 3.01 — 5.28 2.01 4.87 1.00 2.48 — 0.82 2.82 3.40 5.09 — 2.15 27.32 22.20 18.22 18.67 24.50 35.84 14.97 21.83 45.33 8.28 8.04 9.70 — 75.92 15.81 5.91 8.55 44.53 48.14 10.04 — 45.66 11.52 38.55 13.37 19.47 21.66 25.65 14.50 23.34 19.80 11.15 18.43 19.47 45.65 76 Morningstar Advisor October/November 2011

Table of Contents for the Digital Edition of Morningstar Advisor - October/November 2011

Morningstar Advisor - October/November 2011
Contents
Contributors
Letter From the Editor
The Emotional Burden
Where Are You Going for Yield?
Ahead of the Curve
How to Use a ‘Collar’
Why Dividends
Is Bond Investing All Uphill From Here?
Four Picks for the Present
Investment Briefs
The Risks of Stretching for Yield
For Banks, Uncertainty Reigns
The Virtues of Dividends
How Well Do You Know Templeton Global Bond?
The Case for Dividends in Emerging Markets
Finding Refuge in Value
Swift, Smooth, and Silent
Crack Open Closed- End Funds to Avoid the Relevance Paradox
Getting Beyond Labels in the ‘To vs. Through’ Debate
Handling the Headwinds
Bonds, Short-Term Bonds
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
A Prisoner of Pricing

Morningstar Advisor - October/November 2011