Morningstar Advisor - August/September 2013 - (Page 78)

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). Name it 4 or 5 stars. The wider the discount, the higher the star rating, and vice versa. There were 35 stocks that fit that profile as of June 30, 2013, seven more than made the list on April 30. When a stock trades at a suitably wide discount to our estimate, we award Industry AstraZeneca PLC ADR AZN Baxter International Inc. BAX Berkshire Hathaway Inc Class B BRK.B CH Robinson Worldwide, Inc. CHRW Coca-Cola Co KO Our analysts award wide economic moats to companies that they believe possess durable competitive advantages that are likely to provide economic profits well into the future. Market Cap ($Mil) EPS TTM P/E Ratio (trailing) Revenue Growth % 3 Yr Drug Manufacturers - Major Medical Instruments & Supplies Insurance - Diversified Integrated Shipping & Logistics Beverages - Soft Drinks 61,953 39,389 273,929 9,624 182,649 4.53 4.14 6.99 3.66 1.91 10.45 16.72 16.00 15.38 21.01 -5.17 4.15 13.03 14.45 15.72 -1.37 5.20 20.02 19.88 10.38 5.66 2.53 — 2.30 2.61 25.95 33.46 8.81 43.15 26.70 Covidien PLC COV eBay Inc EBAY Enbridge, Inc. ENB Exelon Corp EXC Expeditors International of Washington, Inc. EXPD Medical Instruments & Supplies Specialty Retail Oil & Gas Midstream Utilities - Diversified Integrated Shipping & Logistics 28,153 73,260 37,826 27,002 8,403 3.84 2.06 0.76 1.12 1.60 16.31 25.06 58.48 27.62 23.75 4.92 17.26 26.62 10.69 13.48 29.86 2.83 -28.40 -29.72 12.25 1.68 — 2.60 5.97 1.43 17.17 13.64 8.77 4.46 16.05 Express Scripts ESRX Facebook Inc Class A FB Franklin Resources Inc. BEN General Electric Co GE Kinder Morgan Energy Partners LP KMP Health Care Plans Internet Content & Information Asset Management Diversified Industrials Oil & Gas Midstream 53,156 63,543 30,703 244,337 37,314 1.70 0.05 9.59 1.34 1.38 35.59 526.32 14.18 16.18 34.25 56.00 — 19.19 -1.73 7.26 4.10 — 32.47 8.50 — — — 0.79 3.13 5.84 10.75 1.29 22.48 11.61 5.22 Kinder Morgan Management LLC KMR Martin Marietta Materials MLM Maxim Integrated Products Inc. MXIM Medtronic, Inc. MDT National Oilwell Varco, Inc. NOV Oil & Gas Midstream Building Materials Semiconductors Medical Devices Oil & Gas Equipment & Services 10,082 4,836 8,523 54,088 31,179 0.65 2.03 1.49 3.37 5.58 128.21 48.54 18.73 15.27 12.35 0.00 6.17 13.45 1.60 16.39 — -1.42 250.34 6.50 18.32 — 1.52 3.28 1.97 0.88 2.42 6.84 17.46 19.38 12.25 Nestle SA ADR NSRGY Novartis AG ADR NVS Novo Nordisk A/S ADR NVO ONEOK Partners, L.P. OKS Oracle Corporation ORCL Packaged Foods Drug Manufacturers - Major Biotechnology Oil & Gas Midstream Software - Infrastructure 218,158 181,121 89,925 11,235 148,232 3.32 3.93 41.38 2.56 2.26 18.73 17.99 21.41 19.34 13.59 -4.98 8.47 15.17 16.29 11.50 4.49 1.78 29.67 19.09 23.15 2.68 3.43 1.38 5.43 0.75 17.77 14.84 68.77 12.68 24.74 Potash Corporation of Saskatchewan, Inc. POT Qualcomm, Inc. QCOM Ritchie Bros. Auctioneers, Inc. RBA Sanofi ADR SNY Schlumberger NV SLB Agricultural Inputs Communication Equipment Business Services Drug Manufacturers - Major Oil & Gas Equipment & Services 35,773 105,882 2,022 140,662 102,394 2.45 3.56 0.71 1.56 4.07 15.65 17.18 27.17 25.25 17.70 25.85 22.44 5.10 5.35 22.58 29.95 54.59 -5.61 -2.46 16.55 2.58 1.80 2.59 2.49 1.53 22.81 17.99 11.80 — 16.02 Shanghai International Port Group Co., Ltd. Spectra Energy Corp SE Vulcan Materials Company VMC Weight Watchers International, Inc. WTW Western Union Company WU Shipping & Ports Oil & Gas Midstream Building Materials Personal Services Credit Services 59,163 24,004 6,531 2,536 9,733 0.22 1.44 -0.43 4.46 1.67 11.14 23.98 — 10.32 10.27 19.71 3.69 -1.55 9.30 3.67 6.84 2.70 — 22.52 11.78 4.08 10.66 3.33 10.93 0.08 -1.48 1.54 — 2.72 105.10 78 Morningstar Advisor August/September 2013 EPS Dividend Yield ROE % Growth % % Current (trailing) 3 Yr

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2013

Morningstar Advisor - August/September 2013
Contents
Contributors
Letter From the Editor
Under Pressure
Has Your View of Bonds Recently Changed?
The Simple Life Cuts a Path to Prosperity
How Extended Is Your Bond Fund?
A Bond Contrarian Scours the Globe for Value
Investments á la Carte
Investment Briefs
Bond Market Behemoths
Shopping in the Digital Age
Shopping in the Digital Age
Diverse Crowd
Motor City Meltdown
Bond Convergence
Corporates Are Fairly Valued, but Opportunities Will Arise
A Legend Still Pines for the Good Fight
Greener Pastures
Forecasting Market Bubbles and Crashes
Forecasting Market Bubbles and Crashes
Home-Court Advantage
Overcoming Technophobia
These Funds Are Counting on Undervalued Sectors
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
What Price Advice?

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