During the past month, Morningstars equity research team began covering 2019 IPOs Slack (WORK) and Zoom (ZM). Right now, were not confident that either company can earn excess returns on its invested capital over the next decade, reports analyst Dan Romanoff. As such, weve assigned no-moat ratings to both.
But our analysts have initiated coverage of five other companies in the past several weeks that they think can earn excess returns over the next decade--weve assigned these companies narrow Morningstar Economic Moat Ratings. Although all of these stocks are fairly valued today according to our metrics, theyre definitely good ideas for a watchlist.