In mid-2009, Morningstar introduced what it calls "moat trend ratings." Moat trend ratings can be either positive or negative. A positive moat trend indicates that a company's competitive position in strengthening. Conversely, a negative moat trend indicates that it is weakening. These moat trends have been an excellent indicator of stock performance.
In the video below, Fool contributor Daniel Sparks discusses the importance of these ratings and he suggests one way investors can identify positive and negative moat trends. To illustrate, Daniel takes a look at Apple (NASDAQ: AAPL ) , Whole Foods (NASDAQ: WFM ) , and Nokia (NYSE: NOK ) .
It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.
RSS Headlines
Comments from our Foolish Readers
Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the
Report this Comment icon found on every comment.
Be the first one to comment on this article.