These wide-moat companies are rare value deals in bull market

As valuations rise, these stocks are among the few that offer both a margin of safety and a sustainable competitive advantage.

Vikram Barhat 15 February, 2017 | 6:00PM
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North American stock markets appear to have shaken off economic uncertainty in the immediate wake of the November 2016 U.S. presidential elections. Their relentless upward march to new record highs is an indication that the markets have given a big thumbs-up to Donald Trump who has now sits in the Oval Office as the 45th U.S. President.

Buoyed by his pro-growth policies, the Dow has jumped more than 10% since the election results; the S&P 500 index is up about 8%; and the Nasdaq Composite Index has advanced roughly 9.3% during the same period, as of January 25.

The unstinted climb of the markets, however, is making investors worried about stretched valuations, making it harder to find stocks that have healthy future growth potential yet are trading at a sizeable discount to their fair value, thus providing a margin of safety.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Bristol-Myers Squibb Company57.54 USD-0.92Rating Inc290.64 USD0.19Rating
TransDigm Group Inc642.86 USD-0.08Rating
Zimmer Biomet Holdings Inc150.31 USD0.12Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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