Morningstar Advisor - December/January 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 75 stocks that fit that profile as of Oct. 31, 2011, nine fewer than made the list on Aug. 31, 2011. 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 Adobe Systems Inc ADBE Amgen Inc AMGN Applied Materials, Inc. AMAT AstraZeneca PLC ADR AZN Autodesk, Inc. ADSK Automatic Data Processing ADP Bank of New York Mellon BK Berkshire Hathaway Inc B BRK.B BlackRock Inc BLK Campbell Soup Co CPB Cisco Systems Inc CSCO CME Group, Inc. A CME Comcast Corp CMCSK Compass Minerals International, Inc. CMP Credit Suisse Group ADR CS Dun & Bradstreet Corporation DNB eBay Inc EBAY Eli Lilly and Company LLY Equifax, Inc. EFX Exelon Corp EXC Expeditors Intl of Washington, Inc. EXPD Exxon Mobil Corporation XOM Fiserv, Inc. FISV Franklin Resources BEN General Dynamics GD General Electric Co GE GlaxoSmithKline PLC ADR GSK Google, Inc. GOOG Graco Incorporated GGG Grupo Televisa, S.A. ADR TV Home Depot, Inc. HD HSBC Holdings PLC ADR HBC Johnson & Johnson JNJ Diversified Industrials Drug Manufacturers - Major Software - Application Biotechnology Semiconductor Equipment & Materials Drug Manufacturers - Major Software - Application Business Services Asset Management Insurance - Diversified Asset Management Packaged Foods Communication Equipment Financial Exchanges Pay TV Industrial Metals & Minerals Banks - Global Business Services Specialty Retail Drug Manufacturers - Major Business Services Utilities - Diversified Integrated Shipping & Logistics Oil & Gas Integrated Business Services Asset Management Aerospace & Defense Diversified Industrials Drug Manufacturers - Major Internet Content & Information Diversified Industrials Broadcasting - TV Home Improvement Stores Banks - Global Drug Manufacturers - Major 55,386 82,312 14,408 50,640 15,863 64,560 7,677 24,949 25,800 182,010 27,854 10,480 96,084 17,344 62,542 2,511 31,752 3,173 41,026 43,393 4,229 29,325 9,194 376,182 8,035 22,856 22,061 172,255 109,528 189,416 2,535 11,939 56,299 154,805 174,396 5.89 3.30 1.83 4.81 1.45 5.78 1.09 2.52 2.16 5.22 12.42 2.42 1.17 17.79 1.37 5.05 2.81 5.16 1.37 — 1.78 3.63 1.75 7.58 3.04 8.42 7.11 1.27 1.30 29.59 2.26 — 2.22 — 4.18 13.42 16.34 16.10 11.90 8.48 8.29 31.85 20.75 9.78 14.90 12.71 13.74 15.85 15.50 16.75 15.06 8.99 12.97 23.20 — 19.80 12.22 25.97 10.30 18.80 12.66 9.11 12.67 21.41 20.04 18.98 — 16.10 — 15.41 2.91 10.71 6.36 0.63 -0.64 4.02 -3.50 4.03 6.98 4.82 21.14 -1.18 3.01 19.59 7.08 7.63 -7.24 1.59 6.07 7.39 0.30 -0.48 4.46 -1.79 1.98 -1.93 6.02 -4.50 7.82 20.90 -4.01 11.66 -4.20 -3.52 0.27 0.18 8.62 6.70 19.32 -16.45 14.30 -15.09 2.50 -2.03 -2.48 11.90 -7.52 -3.70 -1.40 15.83 22.89 -17.63 -0.07 75.87 19.11 1.46 -1.50 9.53 -5.11 7.94 -3.44 10.26 -21.24 -30.17 25.56 -10.02 -5.90 -5.34 -23.84 9.61 2.79 3.56 — 0.51 2.49 5.71 — 2.83 2.29 — 3.30 3.54 1.01 2.06 1.90 2.28 5.59 2.22 — 5.23 1.83 4.75 1.04 2.35 — 0.96 2.95 3.57 5.10 — 1.98 0.67 2.74 4.39 3.49 27.32 22.20 17.43 18.67 24.50 35.84 15.43 21.83 8.28 8.04 9.70 79.94 14.19 5.91 8.55 47.89 10.04 — 11.60 33.68 12.69 17.05 21.66 25.65 14.50 23.34 19.80 11.15 38.48 19.52 47.78 16.39 19.09 10.54 20.20 78 Morningstar Advisor December/January 2012

Table of Contents for the Digital Edition of Morningstar Advisor - December/January 2012

Morningstar Advisor - December/January 2012
Contents
Contributors
Letter From the Editor
Seduced by Complexity
Is China Exposure Important for a Portfolio?
A Niche Built on Trust
How to Find Your Client’s Investment Style
Taking the Long View
Consensus on Europe Elusive
Four Picks for the Present
Investment Briefs
Is Perception Reality for Active Managers?
Be Alert for Basic-Materials Bargains
Investment Boom Unsustainable
Digging Moats in China
Where China’s Domestic Companies Stand to Benefit
Arising Opportunities
China Strong Long Term
From Currency Manipulation to International Acceptance
The Keys to China’s Fortune
Wedgewood’s Lessons Pay Off
Reading the Evidence on Indexing
Scouting for Investments Abroad
Yield, Please (Hold the Europe)
Mutual Fund Analyst Picks
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
China Fund Managers Eat Elsewhere

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