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
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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
British American Tobacco PLC2,584.50 GBX-0.37Rating
Burberry Group PLC1,876.50 GBX-1.24Rating
Facebook Inc A315.81 USD-3.92Rating
GlaxoSmithKline PLC1,437.40 GBX0.22Rating
Imperial Brands PLC1,576.50 GBX-0.16Rating
Reckitt Benckiser Group PLC5,806.32 GBX0.30Rating
Unilever PLC3,932.00 GBX0.36Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar