Morningstar Advisor - April/May 2012 - (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). 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 48 stocks that fit that profile as of Feb. 29, 2012, 12 fewer than made the list on Dec. 31, 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 Amazon.com Inc AMZN Applied Materials, Inc. AMAT AstraZeneca PLC ADR AZN Bank of New York Mellon BK Berkshire Hathaway Inc B BRK.B Boardwalk Pipeline Partners LP BWP Buckeye Partners, L.P. BPL Campbell Soup Co CPB Cisco Systems Inc CSCO CME Group, Inc. A CME Compass Minerals Intl. Inc. CMP eBay Inc EBAY Exelon Corp EXC Expeditors International of Washington, Inc. Exxon Mobil Corporation XOM Franklin Resources Inc. BEN General Electric Co GE Google, Inc. A GOOG Grupo Televisa, S.A. ADR TV Johnson & Johnson JNJ Lowe's Companies Inc. LOW Martin Marietta Materials MLM Medtronic, Inc. MDT Merck & Co Inc MRK MSCI, Inc. MSCI National Oilwell Varco, Inc. NOV Northern Trust Corporation NTRS Novartis AG ADR NVS Oracle Corporation ORCL Paychex, Inc. PAYX PepsiCo Inc PEP Pfizer Inc PFE Potash Corporation of Saskatchewan, Inc. POT Diversified Industrials Drug Manufacturers - Major Specialty Retail Semiconductor Equipment & Materials Drug Manufacturers - Major Asset Management Insurance - Diversified Oil & Gas Midstream Oil & Gas Midstream Packaged Foods Communication Equipment Financial Exchanges Industrial Metals & Minerals Specialty Retail Utilities - Diversified Integrated Shipping & Logistics Oil & Gas Integrated Asset Management Diversified Industrials Internet Content & Information Broadcasting - TV Drug Manufacturers - Major Home Improvement Stores Building Materials Medical Devices Drug Manufacturers - Major Business Services Oil & Gas Equipment & Services Asset Management Drug Manufacturers - Major Software - Infrastructure Staffing & Outsourcing Services Beverages - Soft Drinks Drug Manufacturers - Major Agricultural Inputs 60,786 90,238 81,594 15,778 59,277 26,867 183,841 5,714 5,857 10,579 106,426 19,242 2,356 46,651 25,803 9,399 406,892 25,501 200,726 201,991 12,024 177,799 35,235 3,885 40,008 115,459 4,261 34,888 10,833 130,010 150,574 11,344 98,197 161,400 40,067 5.96 3.01 1.37 1.16 7.26 2.03 4.35 1.09 1.20 2.43 1.28 27.15 4.45 2.46 3.75 1.79 8.42 8.64 1.23 29.76 — 3.49 1.38 1.78 3.17 2.02 1.41 4.70 2.47 3.78 1.82 1.49 4.03 1.27 3.51 14.71 18.80 131.58 10.55 6.18 10.89 18.02 24.94 49.75 13.70 15.48 10.66 16.18 14.53 10.42 24.39 10.28 13.64 15.48 20.79 — 18.66 20.53 47.85 12.05 18.90 43.67 17.57 17.99 14.43 16.10 21.10 15.63 19.05 13.18 5.43 9.58 35.87 8.96 4.02 2.76 10.06 13.21 35.89 -1.18 3.01 8.60 -1.80 10.91 0.11 2.97 0.63 5.78 -6.90 20.26 11.66 0.67 0.37 -6.79 5.64 26.30 27.00 2.96 -4.13 11.72 16.67 0.29 15.42 11.76 -2.65 6.82 -1.19 -2.76 27.47 14.30 19.15 24.46 -16.61 -26.32 -7.52 -3.70 30.81 -2.56 21.84 -3.17 9.32 -0.93 8.92 -10.58 30.76 -5.90 -8.60 -8.60 -24.77 13.62 -17.75 27.28 -1.38 -10.71 1.73 16.36 -3.09 7.88 1.91 -1.47 2.56 3.35 — 2.62 6.24 2.33 — 7.65 6.79 3.50 1.21 1.93 2.59 — 5.40 1.13 2.18 0.86 3.37 — 0.66 3.52 1.88 1.88 2.51 4.11 — 0.55 2.49 2.96 0.80 4.03 3.29 3.83 0.61 27.56 20.20 8.63 18.64 43.94 7.65 6.37 6.83 5.87 69.94 14.75 8.71 37.51 19.44 17.86 20.60 27.26 23.21 11.15 18.66 16.39 17.02 10.10 5.81 21.49 11.49 13.29 11.95 8.66 14.12 24.51 35.82 30.73 11.78 42.06 78 Morningstar Advisor April/May 2012 http://www.Amazon.com

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2012

Morningstar Advisor - April/May 2012
Contents
Contributors
Letter From the Editor
We’re Too Smart
How Do You Use Alternatives?
Taking the Lead
How to Find Economic Moats
The Beauty of Currencies
No Clarity on Bonds
Four Picks for the Present
Investment Briefs
Performance Chasing, Evaluated
Technology’s Slim Pickings
How Much Is Enough?
The Fear Bubble
Three Traits of a Successful Long-Short Equity Manager
Why Absolute-Return Funds Fail to Deliver
An Economist’s Response to Crises
Undiscovered in Plain Sight
Untangling ETF Tax- Efficiency Myths
Central Banks Driving the Gold Rush
U.S. Industrials Could Add Some Magic to Europe-Weary Portfolios
No-Hesitation Allocation Funds
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The Greatest Story Ever Told

Morningstar Advisor - April/May 2012