Morningstar compiled a list of the most undervalued stocks among those with a large moat. Undervaluation is assessed in relation to Morningstar analysts’ estimations of the equities’ fair value.

And Morningstar awards large moats to firms that it believes have considerable advantages that will allow them to effectively fight off competition for decades.

Morningstar List of Undervalued Stocks

Morningstar ranked the equities based on how cheap they were on September 27.

1. Meta Platforms (NASDAQ:META), is the parent company of social media behemoth Facebook. Stock price discount to Morningstar’s fair value estimate: 61%
2. Teradyne (NASDAQ:TER), is a manufacturer of automated test equipment. The discount to fair value is 53%.
3. Comcast (NASDAQ:CMCSA), a media/telecommunications behemoth. 50% off the market value.
4. Lam Research (NASDAQ:LRCX), is a manufacturer of semiconductor fabrication equipment. The discount to market value is 48%.
5. Equifax (NYSE:EFX), is a credit-reporting company. 47% off the market value.
6. Boeing (NYSE:BA), the aerospace behemoth. 46% discount to fair value
7. Etsy (NASDAQ:ETSY), is an online retailer of arts and crafts. 46% discount to fair value
8. ServiceNow (NYSE:NOW), is a business software firm. The discount to market value is 44%.
9. MercadoLibre (NASDAQ:MELI), an Argentine e-commerce firm. 43% discount from fair value
10. Polaris (NYSE:PII), is a recreational vehicle manufacturer. The discount to fair value is 43%.

Morningstar View on Some Stock

META Stock

“With approximately 3 billion monthly active members, Meta is the world’s biggest social network,” Morningstar analyst Ali Mogharabi stated in a note.

“The increase in user and user engagement, as well as the valuable data generated, makes Meta’s platforms appealing to advertisers.”

“The combination of these significant assets and our forecast that advertisers’ spending will continue to move online bodes well for the firm’s top-line growth and cash flow.”

TERADYNE Stock

In July, Morningstar analyst William Kerwin stated, “We’re lowering our fair-value estimate for Teradyne to $167 per share from $172 earlier, in the wake of dismal second-half outlook that reflects a deteriorating macroeconomic environment.” The stock was last trading at $78.

“However, we feel Teradyne’s long-term fundamentals are strong, and it remains one of our top selections in the technology sector,” he added.

“Teradyne is a heavyweight provider of automated test equipment for semiconductors, with market-leading capabilities across the board.”

Comcast Stock

“Comcast’s main cable business, which accounts for more than half of the firm’s value, has strong competitive advantages,” stated Morningstar analyst Michael Hodel.

“NBCUniversal isn’t as well positioned, but it does have distinctive assets, such as core content brands and theme parks, that should aid in the shift away from conventional television.”

Overall, the general consensus is that these stocks will offer moderate growth while maintaining good cash flow for the foreseeable future.”

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