Morningstar Advisor - December 2013/January 2014 - (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 provide economic profits well into the future. it 4 or 5 stars. The wider the discount, the higher the star rating, and vice versa. There were 29 stocks that fit that profile as of Oct. 31, 2013, 20 less than made the list on Aug. 31, 2013. When a stock trades at a suitably wide discount to our estimate, we award Name Industry Market Cap ($Mil) EPS TTM P/E Ratio (trailing) Revenue Growth % 3 Yr Baxter International Inc. BAX Berkshire Hathaway Inc Class B BRK.B CH Robinson Worldwide, Inc. CHRW Cisco Systems Inc CSCO Coca-Cola Co KO Medical Instruments & Supplies Insurance - Diversified Integrated Shipping & Logistics Communication Equipment Beverages - Soft Drinks Compass Minerals International, Inc. CMP CSX Corp CSX eBay Inc EBAY El Paso Pipeline Partners LP EPB Enbridge, Inc. ENB Industrial Metals & Minerals Railroads Specialty Retail Oil & Gas Midstream Oil & Gas Midstream Exelon Corp EXC Express Scripts ESRX Exxon Mobil Corporation XOM International Business Machines Corp IBM Kinder Morgan Energy Partners LP KMP 35,747 268,984 9,519 121,474 174,738 3.95 7.61 3.66 1.86 1.93 16.34 14.93 16.29 12.63 20.04 4.15 13.03 14.45 6.68 15.72 5.20 20.02 19.88 11.83 10.38 2.85 - 2.34 2.88 2.77 32.08 9.44 42.34 18.08 26.68 2,493 26,416 68,238 8,835 35,933 3.07 1.86 2.10 2.00 0.79 26.32 13.99 27.55 19.61 41.84 -0.74 9.15 17.26 10.62 26.62 -18.64 22.94 2.83 408.00 -28.40 2.86 2.23 - 6.19 2.80 19.03 20.43 13.14 24.94 8.39 Utilities - Diversified Health Care Plans Oil & Gas Integrated Information Technology Services Oil & Gas Midstream 24,446 50,379 394,474 194,596 35,333 1.35 2.23 7.95 14.44 4.15 21.93 27.70 10.82 13.14 10.31 10.69 56.00 15.80 2.96 7.26 -29.72 4.10 34.57 12.81 - 5.85 - 2.68 2.01 6.52 5.35 7.88 21.85 83.26 11.44 Kinder Morgan Management LLC KMR McDonald's Corporation MCD Merck & Co Inc MRK Novo Nordisk A/S ADR NVO Oracle Corporation ORCL Oil & Gas Midstream Restaurants Drug Manufacturers - Major Biotechnology Software - Infrastructure 9,211 96,040 131,950 91,669 152,675 1.93 5.54 1.68 44.31 2.32 48.31 17.64 28.33 21.14 14.31 0.00 6.62 19.89 15.17 11.50 - 9.25 -29.26 29.67 23.15 - 3.19 3.81 1.36 0.90 5.91 37.79 10.00 72.39 25.51 Potash Corporation of Saskatchewan, Inc. POT Procter & Gamble Co PG Ritchie Bros. Auctioneers, Inc. RBA Sanofi ADR SNY Spectra Energy Corp SE Agricultural Inputs Household & Personal Products Business Services Drug Manufacturers - Major Oil & Gas Midstream 26,839 219,497 2,116 142,481 23,808 2.26 3.94 0.70 1.17 1.40 12.08 19.57 29.07 29.07 24.39 25.85 2.16 5.10 5.35 3.69 29.95 -2.07 -5.61 -2.46 2.70 3.83 2.93 2.51 2.44 3.43 23.72 17.51 11.41 6.15 10.91 Sysco Corporation SYY Unilever NV ADR UN Weight Watchers International, Inc. WTW Western Union Company WU Food Distribution Household & Personal Products Personal Services Credit Services 18,877 120,148 1,806 9,392 1.67 1.64 4.25 1.58 19.05 17.06 8.80 11.81 6.04 8.83 9.30 3.67 -5.68 11.40 22.52 11.78 3.46 3.14 2.18 2.94 20.10 35.28 - 92.66 78 Morningstar Advisor December/January 2014 EPS Dividend Yield ROE % Growth % % Current (trailing) 3 Yr

Table of Contents for the Digital Edition of Morningstar Advisor - December 2013/January 2014

Morningstar Advisor - December 2013/January 2014
Contents
Contributors
Letter From the Editor
What’s Your Purpose?
Working for Gen Y
How to Allocate College Savings
Mobius Looks to a New Frontier
Investments á la Carte
Investment Briefs
How to Manage Bonds for Today and Tomorrow
Cloud Is the New Engine of Growth
Knowing Where to Look
Economic Vulnerability Varies by Country
Factor Investing in Emerging Markets
Following the Rules
Exploring Indexing’s Next Frontiers
Frequent Fliers
Family Blind Spots
Optimal Portfolios for the Long Run
Finding Value in a Pricey Sector
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Emerging-Markets Roller Coaster

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