Morningstar Inc. (MORN) provides data on more than 300,000 investment offerings on everything from Stocks to Options to FX.
Adding to this I have recently done further research on Morningstar and believe that they are a strong investment and a stock pick that has gone under the radar of many Wall Street analysts. While many Wall Street analysts constantly complain about the proliferation of useless financial data. Morningstar provides the opposite. Below are four more reasons to like Morningstar:
- Morningstar has steadily grown over the past few years, now boasting a market-cap of $3 billion. The main reason has been the fact that as a result of the big economic downturn many investors have ditched their high priced brokers and started making their own investment decisions using cheaper alternatives such as paid premium memberships with online services like Morningstar, Barrons, The Street, etc. This growth has been huge for the industry, Morningstar specifically leading to stronger future earnings.
- Morningstar has a P/S around 5, which I believe is very favorable. P/S above 10 show that the stock is momentum priced and I would only ever recommend buying a momentum priced stock in a strong market.
- In addition, Morningstar has no debt at all, like I always say “Cash is King” and they live by it with over $400 million in the bank.
- Plus Morningstar is led by a strong, effective management team who operate the business efficiently with: 8% Return on Assets; 12% Return on Equity