Morningstar Advisor - June/July 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 31 stocks that fit that profile as of Apr. 30, 2013, three more than made the list on Feb. 28, 2013. 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 Baxter International Inc. BAX Berkshire Hathaway Inc Class B BRK.B 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 Medical Instruments & Supplies Insurance - Diversified Integrated Shipping & Logistics 17,749 34,761 38,202 263,319 9,131 0.02 1.32 4.14 6.99 3.66 714.29 13.91 16.72 16.92 16.18 20.26 23.89 4.15 13.03 14.45 — — 5.20 20.02 19.88 2.46 1.80 2.39 — 2.39 0.33 7.06 34.40 8.41 43.14 Cisco Systems Inc CSCO eBay Inc EBAY Enbridge, Inc. ENB Exelon Corp EXC Expeditors International of Washington, Inc. EXPD Communication Equipment Specialty Retail Oil & Gas Midstream Utilities - Diversified Integrated Shipping & Logistics 113,411 73,027 37,754 29,955 7,998 1.73 2.06 0.76 1.12 1.60 12.06 25.38 61.35 26.39 22.88 8.44 17.26 26.62 10.69 13.48 12.37 2.83 -28.40 -29.72 12.25 2.49 — 2.56 5.39 1.45 17.79 13.64 8.37 6.48 16.54 Express Scripts ESRX Exxon Mobil Corporation XOM Facebook Inc Class A FB General Electric Co GE ITC Holdings Corp ITC Health Care Plans Oil & Gas Integrated Internet Content & Information Diversified Industrials Utilities - Regulated Electric 49,812 405,109 65,453 237,926 4,602 1.70 9.83 0.05 1.34 3.71 34.13 9.17 588.20 16.03 24.88 56.00 15.80 — -1.73 10.18 4.10 34.57 — 8.50 11.74 — 2.57 — 3.13 1.69 10.75 28.03 0.40 11.39 13.98 John Wiley & Sons, Inc. Class A JW.A Kinder Morgan Energy Partners LP KMP Kinder Morgan Management LLC KMR National Oilwell Varco, Inc. NOV Novo Nordisk A/S ADR NVO Publishing Oil & Gas Midstream Oil & Gas Midstream Oil & Gas Equipment & Services Biotechnology 2,297 22,897 10,102 29,072 96,118 3.05 1.38 0.65 5.58 41.38 12.53 — — 11.19 28.01 3.43 7.26 0.00 16.39 15.17 17.30 — — 18.32 29.67 2.48 5.74 — 0.73 1.30 17.41 -0.83 -0.67 13.16 57.30 ONEOK Partners, L.P. OKS Oracle Corporation ORCL Potash Corporation of Saskatchewan, Inc. POT Praxair, Inc. PX Qualcomm, Inc. QCOM Oil & Gas Midstream Software - Infrastructure Agricultural Inputs Chemicals Communication Equipment 11,655 158,608 37,276 33,798 112,862 2.56 2.15 2.45 5.53 3.56 17.79 15.22 17.61 20.66 17.33 16.29 16.87 25.85 7.81 22.44 -5.48 21.60 29.95 11.84 54.59 5.23 0.53 1.95 1.97 1.53 16.71 25.33 23.41 27.48 17.99 Sanofi ADR SNY Schlumberger NV SLB Spectra Energy Corp SE Vulcan Materials Company VMC Weight Watchers International, Inc. WTW Drug Manufacturers - Major Oil & Gas Equipment & Services Oil & Gas Midstream Building Materials Personal Services 146,911 102,182 20,859 7,112 2,475 1.56 4.07 1.44 -0.43 4.46 21.79 18.38 22.03 — 9.97 5.35 22.58 3.69 -1.55 9.30 -2.46 16.55 2.70 — 22.52 2.38 1.48 3.83 0.07 1.58 8.75 16.02 11.03 -1.39 — Western Union Company WU Credit Services 9,120 1.67 8.76 3.67 11.78 2.75 111.79 78 Morningstar Advisor June/July 2013 EPS Dividend Yield ROE % Growth % % Current (trailing) 3 Yr

Table of Contents for the Digital Edition of Morningstar Advisor - June/July 2013

Morningstar Advisor - June/July 2013
Contents
Contributors
Letter From the Editor
Not Your Values
How Do You Use Alternatives for Clients?
Working to Build a Niche
How to Put Buffett’s Investing Philosophy into Practice
Sophisticated Strategies for the Masses
Investments á la Carte
Investment Briefs
The Percentile Trap
Defense Firms Will Stay Aloft
Beware the Lure of Diversification
Using Alternatives in Practice
Managed Futures and Cash Rates
The World Is Getting Grayer
Waiting to Pull Up Anchor
The Price of Managing Volatility
Let’s Get Back to Basics
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
Mutual Fund Urban Myths

Morningstar Advisor - June/July 2013