10 Undervalued Wide-Moat Stocks Worth Buying Right Now
These high-quality stocks are trading at attractive valuations.
The Morningstar Wide Moat Focus Index tracks companies that earn
Wide-moat companies carry sound balance sheets and significant competitive advantages—two desirable qualities in the face of today’s economic uncertainty.
The constituents of the Morningstar Wide Moat Focus Index are a fertile hunting ground for long-term investors looking for high-quality stocks to invest in that are trading at attractive valuations.
10 Undervalued Wide-Moat Stocks Worth Buying Right Now
These were 10 of the most undervalued wide-moat stocks in the Morningstar Wide Moat Focus Index as of June 16, 2026.
- Nike NKE
- MarketAxess MKTX
- Veeva Systems VEEV
- Broadridge Financial Solutions BR
- LPL Financial Holdings LPLA
- Tyler Technologies TYL
- Zoetis ZTS
- Clorox CLX
- Microsoft MSFT
- Broadcom AVGO
The most undervalued wide-moat stock on the list, Nike, was trading 53% below our fair value estimate as of June 19, while the last company on the list, Broadcom, was trading 37% below our
To keep the index focused on the least-expensive high-quality stocks, Morningstar reconstitutes it regularly. The index comprises two subportfolios containing 40 stocks each, many of which are overlapping positions. The subportfolios are reconstituted semiannually in alternating quarters on a “staggered” schedule.
Morningstar reevaluates the index’s holdings and adds and removes stocks based on a preset methodology. Because stocks are equally weighted within each subportfolio, the reconstitution process also involves rightsizing positions.
After the most recent reconstitution, half the portfolio added 12 stocks and eliminated 12 stocks.
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12 Undervalued Stocks Added to the Morningstar Wide Moat Focus Index
These mispriced stocks were added to the reconstituted subportfolio of the Morningstar Wide Moat Focus Index on June 16, 2026.
Five of the 12 undervalued wide-moat stocks added to the index this quarter hail from the technology sector; the remaining stocks with attractive valuations come from a smattering of other industries.
12 Stocks Removed From the Morningstar Wide Moat Focus Index
These stocks were removed from the reconstituted subportfolio of the Morningstar Wide Moat Focus Index on June 16, 2026. Stocks can be removed from the index for a few different reasons: if we downgrade their economic moat ratings, if their
Five of the stocks removed from the subportfolio during the latest reconstitution were pushed out by stocks that were trading at more attractive valuations at the time of reconstitution. However, seven stocks were removed from the index because their Morningstar Economic Moat Ratings were downgraded to narrow from wide.
The stocks that were removed shouldn’t always be considered stocks to sell, though—especially when the removed stocks are still trading in what we’d consider a buying range. They’re just not as undervalued as the stocks added to the index at the time of the reconstitution.
What Are Wide-Moat Stocks?
Morningstar thinks that companies with wide economic moats have significant advantages that allow them to successfully fend off competitors for decades. Companies can carve out their economic moats in a variety of different ways: by having high switching costs, through strong brand identities, or by possessing economies of scale, to name just a few.
Over time, we’ve found that the strategy of investing in wide-moat stocks trading at a discount to their fair values has been an effective approach to stock investing.
How to Screen for More Undervalued Wide-Moat Stocks
Morningstar Investor members can access our undervalued wide moat stocks list and then customize the list to their liking using the Morningstar Investor Screener tool. Here are some possible filters you can use to build a customized screen. Simply click the blue Screen with Investor > button, and the full list will be imported into the tool. From there, you can add filters and screen for things like:
Undervalued wide-moat stocks of large companies. Click the blue + Filter button, and in the pop-up box, select Basics, then Stock Style Box. In the left-side navigation, select Large Growth, Large Core, and Large Value from that drop-down box.
Undervalued wide-moat stocks with high dividends. Click the blue + Filter button, and in the pop-up box, select Basics, then Dividend Yield (Forward). In the left-side navigation, slide the button to the dividend rate you’re looking for.
Undervalued wide-moat stocks in the technology sector. Click the blue + Filter button, and in the pop-up box, select Basics, then Sector. In the left-side navigation, choose Technology from the drop-down box.
You can also add multiple filters to your screen of undervalued wide-moat stocks, creating a more precise list that matches your criteria.
The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.
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