Morningstar Advisor - June/July 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 57 stocks that fit that profile as of April 30, 2012, nine more than made the list on Feb. 29, 2012. 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 Applied Materials, Inc. AMAT AstraZeneca PLC ADR AZN Bank of New York Mellon BK Berkshire Hathaway Inc Class B BRK.B BlackRock Inc BLK Campbell Soup Co CPB CH Robinson Worldwide, Inc. CHRW Cisco Systems Inc CSCO Compass Minerals International, Inc. CMP Eaton Vance Corporation EV eBay Inc EBAY Exelon Corp EXC Expeditors International of Washington, Inc. Express Scripts ESRX Exxon Mobil Corporation XOM Franklin Resources Inc. BEN General Electric Co GE Google, Inc. Class A GOOG Grupo Televisa, S.A. ADR TV Johnson & Johnson JNJ Kinder Morgan Management LLC KMR Linear Technology LLTC Martin Marietta Materials MLM Maxim Integrated Products Inc. MXIM Medtronic, Inc. MDT Merck & Co Inc MRK Micros Systems, Inc. MCRS Microsoft Corporation MSFT Monsanto Company MON MSCI, Inc. MSCI National Oilwell Varco, Inc. NOV Northern Trust Corporation NTRS Novartis AG ADR NVS Diversified Industrials Drug Manufacturers - Major Semiconductor Equipment & Materials Drug Manufacturers - Major Asset Management Insurance - Diversified Asset Management Packaged Foods Integrated Shipping & Logistics Communication Equipment Industrial Metals & Minerals Asset Management Specialty Retail Utilities - Diversified Integrated Shipping & Logistics Health Care Plans Oil & Gas Integrated Asset Management Diversified Industrials Internet Content & Information Broadcasting - TV Drug Manufacturers - Major Oil & Gas Midstream Semiconductors Building Materials Semiconductors Medical Devices Drug Manufacturers - Major Software - Application Software - Infrastructure Agricultural Inputs Business Services Oil & Gas Equipment & Services Asset Management Drug Manufacturers - Major 61,068 98,288 14,448 56,812 27,745 193,692 25,655 10,785 9,941 102,764 2,540 2,957 51,740 25,345 8,466 26,470 395,042 24,996 204,547 198,065 12,118 177,881 7,256 7,159 3,641 8,018 39,626 117,267 4,484 257,487 38,850 4,174 29,963 11,269 131,700 5.96 3.01 1.16 7.30 2.03 4.35 12.37 2.35 2.62 1.28 4.45 1.90 2.46 3.75 1.79 2.53 8.42 8.64 1.23 29.76 10.95 3.49 0.14 2.12 1.78 1.60 3.19 2.02 1.88 2.76 3.54 1.41 4.70 2.47 3.78 14.99 20.62 10.33 6.01 11.66 18.48 15.48 14.39 22.78 15.70 19.05 13.83 16.18 10.41 22.32 22.08 10.26 — — — 26.11 18.66 — — — — — — — — — 25.97 16.13 19.27 15.60 5.43 9.58 8.96 2.06 2.76 10.06 21.49 -1.18 6.41 3.01 -1.80 4.77 10.91 0.11 2.97 28.03 0.63 5.78 -6.90 20.26 9.27 0.67 — 8.09 -6.79 6.40 5.64 26.30 1.84 5.00 1.32 27.00 2.96 -4.13 11.72 6.82 -1.19 27.47 20.23 19.15 24.46 28.87 -7.52 8.00 -3.70 -2.56 3.68 21.84 -3.17 9.32 18.00 -0.93 8.92 -10.58 30.76 0.00 -8.60 -47.43 13.50 -24.77 18.00 13.62 -17.75 12.87 12.89 -6.49 27.28 -1.38 -10.71 1.73 2.55 3.12 2.86 6.37 2.25 — 3.06 3.40 2.04 1.36 2.40 2.94 — 4.51 1.25 — 2.23 0.90 3.31 — 27.56 20.20 18.64 42.98 7.65 6.37 9.14 72.65 35.20 14.75 29.56 47.81 19.18 17.86 20.60 41.97 27.26 23.21 11.15 19.59 0.66 16.39 3.52 17.02 — 0.53 3.12 112.29 2.01 5.81 3.17 2.55 4.15 — 2.35 1.62 — 0.65 2.40 4.57 16.17 20.92 11.49 16.33 38.23 16.67 13.29 11.95 8.66 13.47 78 Morningstar Advisor June/July 2012

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2012

Morningstar Advisor - June/July 2012
Contributors
Letter From the Editor
Be Worth Remarking About
How Important Is Stewardship?
From West Point to Points East
Where a Fund’s Secrets Lie
Getting Fund Directors on Board
Managers Prep for Housing Rebound
Four Picks for the Present
Investment Briefs
A Hedge Against Career Risk
Natural Gas Reaches Capitulation
Family Matters
How Good Stewardship Predicts Superior Performance
Stewardship Goes Back to the Fundamentals
On the Go for Fixed Income
Where Shareholders Ride First Class
Dangers Lurk in Exchange-Traded Notes
Stocks on Sale in a Strong Market
A Good Steward Is Easy to Find
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
Buffett Rule’s Biggest Losers

Morningstar Advisor - June/July 2012