Which food companies have a wide moat
9 Undervalued European Stocks for a Low Carbon Economy
Specifically, we were looking for European stocks that are covered by our stock research and at the same time have a broad economic moat and a stable or positive moat trend, have a Morningstar stock rating of 4 or 5 stars and an overall carbon risk classification of negligible or low exhibit.
In other words, we were looking for European companies with a solid competitive advantage that are very well positioned for a low carbon economy and are currently trading in a buy area. We found 9 of them.
Let's take a closer look at the two stocks with 5-star Morningstar stock ratings:
Anheuser-Busch InBev SA / NV
In our opinion, AB InBev has one of the strongest cost advantages in our defensive consumer product coverage and is one of the most efficient companies. The enormous global size and the monopoly-like position in Latin America and Africa give AB InBev significant fixed cost leverage and pricing power in purchasing.
According to Philip Gorham, Director of Equity Research at Morningstar, AB InBev is well positioned to capitalize on secular growth in several of its markets. In Latin America and Asia, which together account for almost two thirds of consolidated EBIT, consumers are turning to global premium brands, and ABI has a strong portfolio with Budweiser, Corona and Stella Artois. Developed markets, on the other hand, are likely to remain fragmented and highly competitive.
After a sharp decline in sales of 10% and a decline in adjusted EBIT of 25% in the past year, Morningstar analysts anticipate renewed sales growth of 8.3% in 2021, which is primarily due to a recovery in the horeca sector . Additionally, they expect the industry's secular growth rate to return, with an estimate of medium-term sales growth of 4%.
Roche Holding AG
"We believe Roche's drug portfolio and industry-leading diagnostics create sustainable competitive advantage," said Karen Andersen, Healthcare Strategist at Morningstar. "Roche's broad moat stems from its status as a leader in oncology therapeutics and in vitro diagnostics, and the company has a promising strategy to combine its expertise in both areas to generate a growing pipeline for personalized medicine Much of Roche's moat in pharmacy stems from its longstanding relationship with Genentech. Roche first acquired a controlling interest in Genentech in 1990 and owned nearly 56% of the company before the Genentech Board of Directors made the 2009 offer Roche accepted to buy the entire stock for $ 95 per share. "
Roche's focus on biologics and innovative pipeline are key to the company's ability to maintain its wide moat and continue to grow as the current blockbusters compete. Roche's diagnostics business is also strong. With a 20% share of the global in vitro diagnostics market, Roche is number one in this industry ahead of its competitors Siemens, Abbott and Ortho.
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