Morningstar is one of the biggest names in the financial services industry. It is best known for providing investment management services, research, and data to individual investors, asset managers, and institutional clients. When you think about investment management stocks to buy, the first names that might come to your mind could be large asset management companies. Some of them are suitable investments as they have a strong brand, an asset-light business, and pay good dividends as well. However, companies like Morningstar also present a solid value proposition for investors looking to buy financial stocks.
Morningstar’s Industry Position
Morningstar is considered to be one of the most influential research companies in the industry. It has operations in 29 countries, and its analyst recommendations are closely followed by asset managers and financial journalists. The impact of Morningstar’s ratings and analysis on the flow of money into or out of stock is what makes the company so influential. Morningstar’s ratings are also used by fund managers when advertising their products in marketing content. A portfolio of stocks that have positive Morningstar ratings may also create a perception that the fund is well run and has credibility. Morningstar is now expanding its capabilities in the upcoming area of ESG investing. It acquired ESG research firm Sustainalytics in 2020, which adds deep ESG expertise to Morningstar’s repertoire. Such abilities position Morningstar well for future growth and make it a top financial stock to buy now.
Morningstar’s stock closed at $226.40 on 26th March 2021. The stock was down 1.7% over the preceding 30 days. Since October 2020, the stock is up about 40%. On a 3-year basis, the stock is up 135%. A peer of Morningstar is FactSet Research. It is up more than 4.5% over the preceding 30 days having closed at $325.62 on 26th March 2021. The stock is up about 28% on a 1-year basis.