10 Cheap Wide-Moat Stocks for 2025
The Morningstar Wide Moat Focus Index tracks companies that earn Morningstar Economic Moat Ratings of wide and whose stocks are trading at the lowest current market prices relative to our fair value estimates.
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 buy that are trading at cheap prices.
10 Cheap Wide-Moat Stocks for 2025
These were 10 of the most undervalued wide-moat stocks in the Morningstar Wide Moat Focus Index as of March 24, 2025.
- Estee Lauder EL
- Nike NKE
- Pfizer PFE
- Campbell Company CPB
- International Flavors & Fragrances IFF
- Brown-Forman BF.B
- Constellation Brands STZ
- Huntington Ingalls Industries HII
- Adobe ADBE
- NXP Semiconductors NXPI
The most undervalued wide-moat stock on the list, Estee Lauder, was trading 44% below our fair value estimate as of March 24, while the last company on the list, NXP Semiconductors, was trading 30% below our fair value estimate. We think all 10 of these names are high-quality stock ideas for long-term investors to consider.
To keep the index focused on the least-expensive high-quality stocks, Morningstar reconstitutes it regularly. The index consists of 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 nine stocks and eliminated nine stocks.
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