On Monday, top-ranked investment research firm Morningstar raced past a milestone. Its Relative Strength (RS) Rating jumped into the 80-plus percentile as it shot up 10 points to 88, up from 78 the day before. One reason for the upgrade — a stellar earnings report last Thursday that resulted in an 8% Morningstar stock price hike on Friday.
Morningstar Stock Price Driven By Soaring Profits
Over the past four quarters, Chicago-based Morningstar reversed from a 60% drop in earnings for its March, 2023-ended quarter to post 37% growth, 66% and last quarter a 240% leap to $1.97 per share.
Revenue growth for the small-cap stock has accelerated during that period too, from 5% to 7%, 10% and 13% last quarter to $538.7 million.
Market research shows that the top-performing stocks often have an RS Rating north of 80 as they launch their biggest climbs. Morningstar just joined that group, which includes some of the best stocks to buy and watch.
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Morningstar stock is still in a buy zone after climbing above a 289.17 buy point in a flat base. Monday the investment research firm closed down, having given back a stingy 1% of Monday's surge, to above 295.
Heavy Buying By Big Funds
Additionally, Morningstar stock has an outstanding 94 Composite Rating out of 99. Its Earnings Per Share Rating is 88 and it boasts an A SMR Rating (sales + profit margins + return on equity) on an A-to-E scale with A superb and E dismal.
Its A Accumulation/Distribution Rating shows heavy buying by institutional investors such as mutual funds and university funds.
Morningstar stock earns the No. 1 rank among its peers in the Commercial Services-Market Research industry group. Moody's and Thomson Reuters are also among the top 5 in the group.
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