Morningstar Upgrades Three Wide-Moat Stocks Despite Overvaluation Concerns

Morningstar analyst Susan Dziubinski highlights three companies that recently earned wide-moat rating upgrades, signaling durable competitive advantages. Goldman Sachs (GS), Interactive Brokers Group (IBKR), and W.W. Grainger (GWW) now possess stronger business moats—yet all trade above Morningstar's fair-value estimates.

Goldman Sachs dominates global investment banking with a 10% share in mergers and acquisitions. Post-financial crisis reforms have streamlined its revenue mix and reduced risk. Still, its $748 share price far exceeds Morningstar's $570 valuation.

Interactive Brokers leverages automation to undercut rivals on cost while maintaining superior trade execution. Its $63 market price overshoots the $46 fair-value estimate. W.W. Grainger's scale as the largest industrial distributor completes the trio, though its valuation disconnect remains unstated.