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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