5 Quality UK Stocks Going Cheap

A sustainable competitive advantage can protect a company’s revenues and profits. We outline five stocks with an advantage not priced in by the market

Emma Wall 21 January, 2019 | 8:15AM

Unilever sustainable competitive advantage economic moat

A sustainable competitive advantage is key when determining whether a particular company will thrive in the future. Morningstar equity analysts call this advantage an economic moat – as this advantage, be it intellectual property, sticky customer base or market dominance – can protect a company’s revenues and profits the way a moat protects a castle.

Morningstar equity analysts believe there are key sources of economic moat; the network effect, intangible assts, cost advantage, switching costs and efficient scale. They assign a moat rating to a company; wide, narrow or no moat.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,668.00 GBX-1.19
Burberry Group PLC1,575.00 GBX-1.96
Facebook Inc A252.53 USD-0.90
GlaxoSmithKline PLC1,525.60 GBX0.32
Imperial Brands PLC1,380.00 GBX-0.54
Reckitt Benckiser Group PLC7,430.00 GBX0.16
Unilever PLC4,740.00 GBX-1.66

About Author

Emma Wall  is former Senior International Editor for Morningstar

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