Morningstar, Inc. (NASDAQ:MORN) is a leading provider of investment research services with its headquarters in Chicago, Illinois. The company has recently made significant investments in various business lines, such as private markets data and ESG (Environmental, Social, and Governance), which have impacted its margins in the short term but are expected to unlock future growth opportunities.
Polen Global SMID Company Growth Strategy, an investment management company, highlighted Morningstar, Inc. (NASDAQ:MORN) as one of its top picks in its third-quarter 2023 investor letter. According to the letter, Morningstar, Inc. (NASDAQ:MORN) has the potential to regain its prior margin levels of 20-25% from the current low-to-mid teens as it continues to benefit from its recent investments. This, combined with expected low-double-digit revenue growth and the company’s strategic share buybacks, is anticipated to drive healthy earnings per share (EPS) growth over the long term.
Despite its growth potential, Morningstar, Inc. (NASDAQ:MORN) is not included in the list of 30 Most Popular Stocks Among Hedge Funds, according to our database. However, at the end of the second quarter, 22 hedge fund portfolios held positions in Morningstar, Inc. (NASDAQ:MORN), compared to 20 in the previous quarter, indicating increased interest from hedge funds.
To gain further insights into Morningstar, Inc. (NASDAQ:MORN), Baron Funds’ views on the company can be explored in another article. For additional investor letters from hedge funds and leading investors, readers can visit our hedge fund investor letters Q3 2023 page.
In conclusion, Morningstar, Inc. (NASDAQ:MORN) is poised for growth as it continues to capitalize on its investments and expand its market presence in the financial services industry. With a solid track record and a focus on long-term value creation, the company offers potential opportunities for investors seeking exposure to the investment research sector.
FAQs:
1. What does Morningstar, Inc. (NASDAQ:MORN) do?
Morningstar, Inc. (NASDAQ:MORN) provides investment research services.
2. Why did Morningstar, Inc. (NASDAQ:MORN) underperform in the third quarter of 2023?
Negative security selection drove the underperformance of Morningstar, Inc. (NASDAQ:MORN) in the third quarter of 2023, according to Polen Global SMID Company Growth Strategy’s investor letter.
3. How is Morningstar, Inc. (NASDAQ:MORN) expected to achieve healthy EPS growth?
Morningstar, Inc. (NASDAQ:MORN) is predicted to achieve healthy EPS growth based on its expectation to regain prior margin levels, low-double-digit revenue growth, and management’s history of opportunistic share buybacks.