Morningstar Advisor - December 2012/January 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 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. 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 52 stocks that fit that profile as of Oct. 31, 2012, three more than made the list on Aug. 31, 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 Autodesk, Inc. ADSK Bank of New York Mellon Corp BK Berkshire Hathaway Inc Class B BRK.B BlackRock Inc BLK Boardwalk Pipeline Partners LP BWP Buckeye Partners, L.P. BPL Caterpillar Inc CAT CH Robinson Worldwide, Inc. CHRW Cisco Systems Inc CSCO Compass Minerals International, Inc. CMP Enbridge, Inc. ENB Enterprise Products Partners LP EPD Exelon Corp EXC Expeditors International of Washington, Inc. Express Scripts ESRX Facebook Inc Class A FB General Dynamics GD General Electric Co GE GlaxoSmithKline PLC ADR GSK Google, Inc. Class A GOOG Grupo Televisa, S.A. ADR TV IHS, Inc. Class A IHS Intel Corp INTC John Wiley & Sons, Inc. Class A JW.A Johnson & Johnson JNJ Kinder Morgan Energy Partners LP KMP Kinder Morgan Management LLC KMR Kinder Morgan, Inc. KMI Martin Marietta Materials MLM Maxim Integrated Products Inc. MXIM McDonald's Corporation MCD Microsoft Corporation MSFT Diversified Industrials Drug Manufacturers - Major Semiconductor Equipment & Materials Software - Application Asset Management Insurance - Diversified Asset Management Oil & Gas Midstream Oil & Gas Midstream Farm & Construction Equipment Integrated Shipping & Logistics Communication Equipment Industrial Metals & Minerals Oil & Gas Midstream Oil & Gas Midstream Utilities - Diversified Integrated Shipping & Logistics Health Care Plans Internet Content & Information Aerospace & Defense Diversified Industrials Drug Manufacturers - Major Internet Content & Information Broadcasting - TV Business Services Semiconductors Publishing Drug Manufacturers - Major Oil & Gas Midstream Oil & Gas Midstream Oil & Gas Midstream Building Materials Semiconductors Restaurants Software - Infrastructure 61,450 102,490 13,204 7,020 28,175 200,193 32,597 5,831 4,452 55,552 9,910 89,187 2,588 31,431 45,555 26,577 7,676 43,555 41,617 22,755 220,212 109,948 217,868 25,872 5,820 103,501 2,543 192,634 19,868 8,489 33,792 3,954 8,278 85,077 242,647 6.25 4.11 0.83 1.25 1.94 5.65 12.92 1.58 2.61 9.77 2.75 1.49 3.10 1.02 2.74 1.80 1.60 1.66 0.07 6.72 1.26 1.96 32.16 210.60 2.02 2.29 3.25 3.14 0.90 -0.29 0.16 1.69 1.27 5.31 1.85 14.31 21.19 12.77 25.58 13.23 17.45 15.11 17.15 81.97 9.49 22.17 11.51 25.38 51.02 19.23 15.29 21.74 33.67 285.71 10.13 17.01 13.57 21.14 2.81 41.67 9.16 13.35 22.57 — — 46.51 64.94 21.65 16.31 15.46 5.43 9.58 8.96 -1.46 2.76 10.06 21.49 13.21 35.89 5.42 6.41 8.44 -1.80 6.35 7.70 0.11 2.97 28.03 — 3.70 -6.90 3.99 20.26 9.27 16.24 12.84 3.43 0.67 -11.23 — -11.92 -6.79 13.45 4.71 8.05 6.82 -1.19 27.47 15.10 19.15 24.46 28.87 -16.61 -26.32 9.35 8.00 12.37 -2.56 -10.61 8.96 -3.17 9.32 18.00 — 3.65 -10.58 5.41 30.76 0.00 9.48 37.47 17.30 -8.60 -49.49 -47.43 — -24.77 250.34 11.91 7.28 2.61 3.10 3.23 — 2.16 — 3.14 8.41 9.14 2.31 2.15 2.14 2.48 2.77 4.93 6.75 1.44 — — 3.10 3.24 5.24 — 0.49 — 4.18 2.08 3.38 6.01 — 4.11 1.86 3.17 3.30 2.77 25.69 19.22 12.78 15.01 6.60 6.86 9.27 8.37 2.22 40.75 34.65 16.32 22.87 8.16 20.41 9.37 18.39 8.80 1.37 17.22 9.84 66.22 17.18 14.65 9.20 25.42 19.48 14.26 -2.72 -1.78 2.29 4.59 15.00 37.93 24.50 78 Morningstar Advisor December/January 2013

Table of Contents for the Digital Edition of Morningstar Advisor - December 2012/January 2013

Morningstar Advisor - December2012/January 2013
Contents
Contributors
Letter From the Editor
What Stands Between Me and Stupid
Why Do You Use Dynamic Funds of Funds?
Serving Clients and Community
How to Pick an ETF Managed Portfolio Strategy
Tactical View of Risk
Investments á la Carte
Investment Briefs
Unbundling ETF Managed Portfolios
Risks Loom Over Telecom Industry
Outsourcing Asset Allocation
ETF Managed Portfolios on the Rise
Age-Based Options Take Over 529 Industry
How the Landscape for Advisors Is Changing
Mark Egan Embraces Volatility
Alpha, Beta, and Now … Gamma
Performance Gaps
Gains in Momentum
Companies Where Management Teams Add Value
Our Favorite Mutual Funds
50 Most-Popular Equity ETFs
Undervalued Stocks With Wide Moats
The Once and Future King

Morningstar Advisor - December 2012/January 2013