Morningstar Advisor - April/May 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 highquality stocks (those boasting wide Morningstar Economic Moat Ratings) that are trading on the cheap (rated 4 or 5 stars by our Name it 4 or 5 stars. The wider the discount, the higher the star rating, and vice versa. There were 28 stocks that fit that profile as of Feb. 28, 2013, 24 fewer than made the list on Dec. 31, 2012. When a stock trades at a suitably wide discount to our estimate, we award Industry Applied Materials, Inc. AMAT Bank of New York Mellon Corp BK Berkshire Hathaway Inc Class B BRK.B Boardwalk Pipeline Partners LP BWP CH Robinson Worldwide, Inc. CHRW analysts). Our analysts award wide economic moats to companies 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 Semiconductor Equipment & Materials Asset Management Insurance - Diversified Oil & Gas Midstream Integrated Shipping & Logistics 16,249 33,139 242,151 6,304 9,180 0.02 2.03 6.28 1.42 3.67 666.67 13.99 18.08 18.62 20.75 20.26 23.89 13.03 9.23 14.45 — — 20.02 17.42 19.88 2.69 1.82 — 7.79 2.39 0.33 6.71 7.73 8.64 34.90 Cisco Systems Inc CSCO Compass Minerals International, Inc. CMP Exelon Corp EXC Expeditors International of Washington, Inc. EXPD Express Scripts ESRX Communication Equipment Industrial Metals & Minerals Utilities - Diversified Integrated Shipping & Logistics Health Care Plans 116,397 2,574 27,472 7,989 48,136 1.73 2.65 1.42 1.57 1.76 12.03 27.86 21.83 24.75 31.85 8.44 -0.74 10.69 — 56.00 12.37 -18.64 -29.72 — 4.10 2.02 2.62 6.08 1.45 — 17.79 18.71 6.48 16.54 10.15 General Dynamics GD General Electric Co GE Intel Corp INTC John Wiley & Sons, Inc. Class A JW.A Kinder Morgan Management LLC KMR Aerospace & Defense Diversified Industrials Semiconductors Publishing Oil & Gas Midstream 24,349 247,167 106,735 2,315 9,447 -0.94 1.29 2.13 3.13 -0.19 — 16.69 9.80 11.67 — -0.49 -1.73 14.94 3.43 0.00 — 8.50 40.38 17.30 — 2.96 3.03 4.10 2.39 — -2.70 11.39 22.66 18.15 -0.67 Martin Marietta Materials MLM Microsoft Corporation MSFT National Oilwell Varco, Inc. NOV Novartis AG ADR NVS ONEOK Partners, L.P. OKS Building Materials Software - Infrastructure Oil & Gas Equipment & Services Drug Manufacturers - Major Oil & Gas Midstream 4,812 234,535 29,093 166,248 11,861 1.83 1.82 5.83 3.89 3.04 52.91 15.29 11.68 17.42 15.15 6.17 8.05 16.39 8.47 16.29 -1.42 7.28 18.32 1.78 -5.48 1.53 3.07 0.72 2.39 4.99 5.99 22.62 13.16 14.09 19.78 Paychex, Inc. PAYX Potash Corporation of Saskatchewan, Inc. POT Qualcomm, Inc. QCOM St Jude Medical, Inc. STJ Vulcan Materials Company VMC Staffing & Outsourcing Services Agricultural Inputs Communication Equipment Medical Devices Building Materials 12,363 34,760 114,513 11,951 7,107 1.54 2.37 3.78 2.39 -0.41 21.51 17.06 19.69 17.15 — 2.30 25.85 22.44 5.54 -1.55 0.67 29.95 54.59 1.88 — 3.80 1.74 1.50 2.18 0.07 34.37 23.41 20.73 17.55 -2.20 Weight Watchers International, Inc. WTW Western Union Company WU Williams Partners LP WPZ Personal Services Credit Services Oil & Gas Midstream 2,300 8,321 19,540 4.23 1.69 0.02 10.13 8.30 20.04 9.30 3.67 16.73 22.52 11.78 -81.28 1.70 — 2.90 111.79 6.53 11.47 78 Morningstar Advisor April/May 2013 EPS Dividend Yield ROE % Growth % % Current (trailing) 3 Yr

Table of Contents for the Digital Edition of Morningstar Advisor - April/May 2013

Morningstar Advisor - April/May 2013
Contents
Contributors
Letter From the Editor
The Pursuit of Happiness and Financial Advice
What Strategies Do You Use to Control Risk?
Driven to Succeed for Clients and Family
How to Assess a Portfolio’s Bond Risk
Luck, Skill, and Investing
Investments á la Carte
Investment Briefs
Investing’s No- Brainers Have Costs
A Defensive Ride
Risk On/On Risk
The Risk of Being Overconfident
Year of Living Dangerously
The Risk-Parity Approach
A Guide to Mutual Funds Running Risk-Parity Strategies
What Moats Tell Us About Risk
Risk’s Wake-Up Call
Seeing Is Believing
Why Investors Lag the Returns of Their Funds
Liquidity Signals
Pump Them Up
Golden Oldies Keep on Truckin’
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Our Social Blind Spot

Morningstar Advisor - April/May 2013