BOSTON ( TheStreet) -- Morningstar (MORN - Get Report), known for its mutual-fund ratings, also offers first-rate equity research. The analysis firm bestows its highest five-star rating on only 31 of the 1,700 stocks it covers. Key is a company's "moat", a sustainable competitive advantage that keeps rivals at bay, and its ability to generate cash flow, not earnings.Morningstar is value-focused, seeking stocks that sell at a discount to their intrinsic fair value. Given this orientation, it's no wonder that many of its current favorites are historically cheap large-cap equities. Below is a closer look at four of Morningstar's five-star large-cap stock picks heading into 2011.
Morningstar's 5-Star Large-Cap Stocks for 2011
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