Morningstar Advisor - August/September 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 59 stocks that fit that profile as of June 30, 2012, two more than the list on April 30, 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 Bank of New York Mellon BK Berkshire Hathaway Inc Class B BRK.B BlackRock Inc BLK Buckeye Partners, L.P. BPL Campbell Soup Co CPB Caterpillar Inc CAT Cerner Corporation CERN CH Robinson Worldwide, Inc. CHRW Cisco Systems Inc CSCO Compass Minerals International, Inc. CMP Dun & Bradstreet Corporation DNB eBay Inc EBAY Enbridge, Inc. ENB Exelon Corp EXC Expeditors International of Washington, Inc. Express Scripts ESRX Exxon Mobil Corporation XOM Franklin Resources Inc. BEN General Dynamics GD General Electric Co GE Google, Inc. Class A GOOG Graco Incorporated GGG Grupo Televisa, S.A. ADR TV Intel Corp INTC Johnson & Johnson JNJ Kinder Morgan, Inc. Class P KMI Linear Technology LLTC Lowe's Companies Inc. LOW Martin Marietta Materials MLM Maxim Integrated Products Inc. MXIM McDonald's Corporation MCD Medtronic, Inc. MDT Diversified Industrials Drug Manufacturers - Major Semiconductor Equipment & Materials Asset Management Insurance - Diversified Asset Management Oil & Gas Midstream Packaged Foods Farm & Construction Equipment Health Information Services Integrated Shipping & Logistics Communication Equipment Industrial Metals & Minerals Business Services Specialty Retail Oil & Gas Midstream Utilities - Diversified Integrated Shipping & Logistics Health Care Plans Oil & Gas Integrated Asset Management Aerospace & Defense Diversified Industrials Internet Content & Information Diversified Industrials Broadcasting - TV Semiconductors Drug Manufacturers - Major Oil & Gas Midstream Semiconductors Home Improvement Stores Building Materials Semiconductors Restaurants Medical Devices 60,957 102,554 13,548 25,417 197,496 31,445 5,204 10,384 52,017 13,735 9,694 87,746 2,521 3,353 50,526 31,892 32,042 7,840 45,244 394,575 23,582 23,046 208,516 186,222 2,628 12,254 127,737 186,479 26,551 6,927 31,383 3,576 7,191 90,984 38,972 6.06 3.24 1.02 2.07 5.08 12.72 1.00 2.33 7.92 1.90 2.69 1.35 4.01 5.61 2.54 1.17 3.00 1.73 2.46 8.28 8.72 6.80 1.21 33.00 2.29 140.40 2.36 3.64 0.36 1.94 1.53 1.38 1.33 5.35 3.41 14.79 19.88 11.26 10.60 16.39 13.35 52.08 14.33 10.72 43.67 21.79 12.67 19.01 12.69 16.56 33.90 12.55 22.42 22.68 10.33 12.72 9.59 15.87 17.57 20.12 2.05 11.30 18.55 46.95 16.18 18.55 62.11 20.92 16.53 12.42 5.43 9.58 8.96 2.76 10.06 21.49 35.89 -1.18 5.42 9.54 6.41 3.01 -1.80 0.62 10.91 6.35 0.11 2.97 28.03 0.63 5.78 3.70 -6.90 20.26 3.09 9.27 12.84 0.67 -11.92 8.09 1.35 -6.79 6.40 4.71 3.50 6.82 -1.19 27.47 19.15 24.46 28.87 -26.32 -7.52 9.35 15.92 8.00 -3.70 -2.56 -1.83 21.84 -10.61 -3.17 9.32 18.00 -0.93 8.92 3.65 -10.58 30.76 5.25 0.00 37.47 -8.60 — 13.50 -1.36 -24.77 18.00 11.91 22.83 2.60 3.04 3.12 2.44 — 3.28 7.73 3.53 2.31 — 2.15 1.71 2.48 2.11 — 2.62 4.19 1.44 — 2.35 0.97 3.07 3.35 — 2.00 0.52 3.31 3.42 3.72 3.26 2.10 2.05 3.58 3.03 2.60 26.48 20.39 15.84 7.46 7.13 9.04 3.88 64.01 38.33 14.81 35.63 14.93 29.56 — 19.18 12.24 11.34 18.85 36.12 25.84 22.26 17.83 10.51 19.59 41.48 15.75 26.61 16.67 14.36 84.33 11.66 4.58 16.17 38.20 20.92 78 Morningstar Advisor August/September 2012

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2012

Morningstar Advisor - August/September 2012
Contents
Contributors
Letter From the Editor
How Much of the Behavior Gap Is Your Fault?
What’s Your View of the Muni-Bond Market?
A Balanced Life
How to Get to Know EMMA
A Strong, Robust Fund Business
Dividend Investing Abroad
Four Picks for the Present
Investment Briefs
Fund Expenses Through the Decades
Autos on Comeback Track
Lessons From the Muni-Bond Rebound
Municipal-Bond Landscape Shifts
Municipal Bonds 101
A Tale of Two Cities
Unraveling the Mysteries of Money
Small Companies Mean the World to Him
The Chinese Art Market and the Origin of Bubbles
The Myth of the Dumb Investor
Stocks That Can Stand the Heat
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The War on Savers

Morningstar Advisor - August/September 2012