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6 More Wide-Moat Stocks to Avoid

These high-quality mid- and small-cap companies are trading well above our fair value estimates.

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As we discussed in last week's column, great companies aren't always great investments. After all, companies with unquestionably strong competitive advantages (in our terminology, those with wide economic moats) can be overpriced. As a result, we may like a company but not its stock.

Last week, we revealed a handful of high-quality large companies trading too richly for our taste. For this week's screen, we looked for overvalued high-quality smaller companies. Specifically, we’ve zeroed in on wide-moat stocks trading in 1-star territory that also land in the mid- and small-cap areas of Morningstar's style box.

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Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.