Morningstar Advisor - February/March 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 70 stocks that fit that profile as of Dec. 31, 2011, five fewer than made the list on Oct. 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 AllianceBernstein Holding L.P. AB Amazon.com Inc AMZN Applied Materials, Inc. AMAT AstraZeneca PLC ADR AZN Autodesk, Inc. ADSK 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 Dun & Bradstreet Corporation DNB Eaton Vance Corporation EV eBay Inc EBAY Exelon Corp EXC Expeditors International of Washington, Inc. Exxon Mobil Corporation XOM Federated Investors, Inc. B FII Fiserv, Inc. FISV Franklin Resources BEN General Dynamics GD General Electric Co GE Graco Incorporated GGG Grupo Televisa, S.A. ADR TV HSBC Holdings PLC ADR HBC IntercontinentalExchange, Inc. ICE Johnson & Johnson JNJ Legg Mason, Inc. LM Linear Technology LLTC Lowe's Companies Inc. LOW Diversified Industrials Drug Manufacturers - Major Software - Application Asset Management Specialty Retail Semiconductor Equipment & Materials Drug Manufacturers - Major Software - Application Asset Management Insurance - Diversified Asset Management Packaged Foods Communication Equipment Financial Exchanges Pay TV Industrial Metals & Minerals Business Services Asset Management Specialty Retail Utilities - Diversified Integrated Shipping & Logistics Oil & Gas Integrated Asset Management Business Services Asset Management Aerospace & Defense Diversified Industrials Diversified Industrials Broadcasting - TV Banks - Global Financial Exchanges Drug Manufacturers - Major Asset Management Semiconductors Home Improvement Stores 58,514 88,358 14,025 1,415 81,415 13,970 63,014 6,988 24,871 182,398 32,428 10,512 100,152 16,308 65,968 2,308 3,654 2,750 40,458 27,893 8,761 412,216 1,643 8,249 21,527 24,216 193,833 2,471 12,052 140,192 8,615 179,908 3,426 6,910 31,965 5.88 2.91 1.83 1.44 1.89 1.45 7.26 1.17 2.17 5.22 12.83 2.43 1.15 18.86 1.39 5.05 5.22 1.75 1.37 3.63 1.81 8.28 1.59 3.05 8.62 7.11 1.30 2.26 — 5.19 6.51 4.10 1.64 2.37 1.38 13.77 18.73 15.02 9.33 102.04 7.42 6.34 31.35 8.87 16.03 13.40 13.48 16.16 13.21 16.05 15.17 13.39 13.37 21.55 12.20 24.10 9.71 9.95 18.42 11.70 9.20 11.93 19.01 — — 18.69 15.77 16.18 12.94 16.23 2.91 10.71 6.36 -26.90 32.11 8.96 4.02 -3.50 6.98 4.82 21.14 -1.18 3.01 19.59 7.08 7.63 1.59 4.77 6.07 -0.48 4.46 -1.79 -5.30 1.98 5.78 6.02 -4.50 -4.01 11.66 -3.52 26.04 0.27 -15.62 8.09 0.37 0.18 8.62 6.70 -32.65 31.21 27.47 14.30 -15.09 -2.03 -2.48 11.90 -7.52 -3.70 -1.40 15.83 22.89 -0.07 3.68 75.87 -1.50 9.53 -5.11 -6.55 7.94 8.92 10.26 -21.24 -10.02 -5.90 -23.84 16.43 9.61 -4.30 13.50 -8.60 2.64 3.31 — 10.71 — 2.90 5.66 — 2.34 — 3.03 3.52 1.29 2.28 1.86 2.57 1.92 3.07 — 4.99 1.21 2.15 6.06 — 1.03 2.69 3.32 2.03 0.66 4.97 26.22 19.78 17.43 — 12.29 24.50 43.94 15.43 8.13 7.48 9.73 79.94 13.80 6.19 8.60 47.89 — 50.05 11.60 17.05 21.13 27.19 32.66 13.95 23.67 19.50 11.54 47.78 16.39 10.54 — 17.04 3.42 19.18 1.22 4.40 3.16 159.64 1.96 11.01 78 Morningstar Advisor February/March 2012 http://www.Amazon.com

Table of Contents for the Digital Edition of Morningstar Advisor - February/March 2012

Morningstar Advisor - February/March 2012
Contents
Contributors
Letter From the Editor
Make a Difference Stories, Not Debates
How Concerned Are You About Europe?
Analytical and Independent
What to Ask When a Fund Manager Leaves
Past, Present, Future
Have Financials Gotten Cheap Enough?
Four Picks for the Present
Investment Briefs
Tactical Funds Miss Their Chance
Specialty Retail: Ad Hoc Opportunity
How Europe Is Making Its Crisis Worse
Impact on U.S. Economy Will Be Minimal
European Banks: Bargains or Value Traps?
Don’t Count the Euro Out Yet
Europe on the Brink
GoodHaven Realizes Its Vision
How Index Trading Increases Market Vulnerability
Nonlisted REITS: Handle With Care
Safety Picks for the Many Moods of Mr. Market
On the Prowl for Large- Blend Index-Beaters
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The Math That Matters

Morningstar Advisor - February/March 2012