hi I'm Susan jubinski with Morningstar morningstar's equity research team has been adding Stacks to its coverage list which means more stock ideas for investors to consider today we're looking at two companies that are new to coverage and that earn wide economic moat ratings now how does Morningstar decide which stocks analysts will cover well our coverage tilts towards larger companies that are of most interest to investors our analysts also cover a fair representation of names in each industry and include interesting mid and small sized companies too our analysts perform a discounted cash flow analysis to arrive at what we call a fair value estimate for what a company's stock is worth they'll scrutinize the balance sheet evaluate Investments that management has made and analyze the company's shareholder distribution policies they'll also dig into a company's competitive advantages and those companies in Superior business positions will be awarded a wide economic moat rating now let's talk about two new wide moat companies both of these stocks are great candidates to add to a watch list of wide mode stocks the First new wide mode stock under coverage is kenview kenview is Johnson and Johnson's former consumer segment which the drug maker spun off several weeks ago can view is the world's largest Pure Play consumer health Company by Revenue many of kenview's brands are the global leaders in their respective segments some of the well-known Brands and can view sizable portfolio include Tylenol Listerine Aveeno and Neutrogena can views wide economic moat ratings stems from its brand reputation an entrenched relationship with retailers we think the balance sheet is sound and its Investments when it was part of J J were Fair we think the company's planned quarterly cash dividend of about 20 cents per quarter is appropriate we think can be stock is worth 27.50 per share and it looks about fairly valued today the second new wide mode stock to coverage is Copart Copart is a salvage vehicle Auctioneer with only one large competitor Copart operates auctions after vehicles are totaled through its online only Marketplace that Marketplace offers liquidity to both sellers such as insurance companies and buyers including dismantlers used vehicle retailers and private individuals this Marketplace creates a network effect that underpins our wide economic moat rating as sellers benefit from a sizable buyer Network and buyers benefit from higher vehicle volumes the company has a healthy balance sheet and management that's acutely focused on reinvesting in the business to drive growth we think Copart stock is worth 77 dollars per share and the stock looks overpriced today for more stock insights be sure to subscribe to morningstar's channel and visit morningstar.com
