Conducting research is one of the most time-consuming parts of successful trading. It takes lots of time to review companies, and it’s tedious work. No one likes spending endless hours digging through financial statements, obscure press releases, and mountains of technical data. However, accurate intelligence is crucial to successful investing, and there’s no substitute for proper research. Fortunately, there are some affordable options for traders who want to outsource the task. In this Morningstar premium review, we’ll compare one of the market’s most prestigious publications and tell you if it’s worth the cost of admission.
Morningstar is one of the most respected investor research services, and its analysis reports are ubiquitous in the investing world. You can access basic versions of Morningstar’s research for free through certain brokers, but most of the good stuff is behind a paywall.
Morningstar Premium is the firm’s subscription-based research service. For a small fee, you can access an expansive library of professional research data. These resources provide valuable insights that are highly useful for both active traders and long-term investors. Best of all, Morningstar packages its research into helpful, easy-to-read reports, which will save you tons of time.
Morningstar Premium subscriptions also come loaded with high-quality features and benefits. We’re going to take a close look at the service in our in-depth Morningstar Premium review. Keep reading to find out whether Morningstar Premium is a good fit for your trading needs.
Morningstar Premium Review: Street Cred
Morningstar is an investment research platform designed to provide actionable data for investment decisions. It’s become one of the leading research firms since American entrepreneur Joe Mansueto founded it in 1984. However, the current CEO is Kunal Kapoor.
Although Morningstar’s headquarters is in Chicago, the firm has nationwide influence. Over its 30-plus year history, the company built a strong track record of insightful research and service. Eventually, the firm developed such a strong reputation that it began managing client assets. In addition to its research arm, Morningstar’s asset management business currently holds over $200 billion in client funds.
What is Morningstar Premium?
Morningstar Premium is a subscription-based investment research service. Morningstar’s analysis primarily relies on fundamental investing principles, so its reports don’t typically emphasize technical analysis.
Unlike other research services, Morningstar reports don’t emphasize complex charts and vague technical patterns. Instead, Morningstar takes a more traditional approach that focuses on company fundamentals and value. These same techniques helped make Warren Buffett one of the wealthiest people in the world.
Fundamental investing strategies use business criteria to analyze stocks and identify trade opportunities. It’s one of the most successful investing techniques.
How Does Morningstar Premium Work?
Morningstar Premium’s research identifies potential investments, analyzes them, and regularly monitors their progress. However, Subscribers also receive regular stock recommendations and insightful advice from world-class experts. Morningstar Premium also provides in-depth analysis for securities in a wide range of asset classes, including equities, ETFs, mutual funds, bonds, and more.
Subscribers can also access analyst backed ratings, premium articles, and lots of other high-value features. Morningstar Premium also provides professional-grade screening tools, so users can find new investments that fit their strategy. Best of all, Morningstar Premium has a mobile app for Apple and Android phones. The app allows premium subscribers to peruse articles and access other premium features from almost anywhere.
Morningstar Premium Review: Features
Morningstar Premium’s main draw is its extensive research library, but users can also access a wealth of useful extras, including:
- Analyst Reports
- Top Investment picks
- Portfolio Manager
- Portfolio X-Ray
- Article Archive
Let’s take a deeper dive into each of Morningstar’s best features:
The article archive also includes research and resources for a wide selection of assets. These articles provide essential financial insights and expertise. An in-house team of veteran analysts writes most of the materials, but you will find some guest articles.
Here are some examples of the kinds of articles on the archive:
- Is the ‘4% Rule’ Broken?
- 2 Stocks We Find Attractive
- The New Big Buyer of Bond ETFs
Morningstar groups its articles by categories so you can easily find what you need. Some of the available types include market updates, stock strategies, advisor insights, and more. The archives come loaded with a variety of research, so you’re bound to find something that fits your investment objectives.
Screeners quickly identify potential investments based on user-designated criteria. It’s like a search engine for stocks. Morningstar Premium’s screener features dozens of adjustable parameters so users can find what they’re searching for in a matter of seconds.
Users can customize Morningstar’s fund screener using more than 100 different parameters. Each parameter is fully adjustable, so you can modify them to your liking. This tool helps you find suitable investments in seconds instead of hours, so it’s a game-changer for people who are searching for new opportunities.
The portfolio X-ray tool shows you the stock allocations of individual funds. Mutual funds and ETFs hold various assets, so it’s important to know what they’re holding. Each fund is like a basket of several different stocks and securities.
Funds are an excellent way to buy into a professionally diversified portfolio. However, you should understand what types of assets the fund holds. The Portfolio X-Ray tool analyzes fund allocations so you can know what you’re buying.
The portfolio manager makes it much easier to track your investments. You can also use it to create watchlists and quickly manage your portfolio directly through the Morningstar Premium platform. The interface is easy-to-use, but it includes all the information you need to make sound decisions. The platform also allows you to easily search through your investments and navigate links to your account. It functions as a central hub for your trading endeavors.
Analyst Reports & Investment Picks
The real draw of the whole Premium subscription is the analyst reports and investment picks. Morningstar uses a proprietary mathematical framework to evaluate and rank different trading options to give you the most lucrative ones.
We don’t know how the math works, but we assume that it incorporates some aspect of Harry Markowitz’s Modern Portfolio Theory (MPT). The rating list has predictions for the best performing securities, including stocks, ETFs, mutual funds, and more.
Morningstar rates equities on a 5-star system. Only the top 10% of securities get the prestigious 5-star rating, and the bottom 10% receive one-star ratings. Morningstar only rates mutual funds with 3, 5, and 10-year bases.
Morningstar Premium Reviewed: Investment Strategy
Morningstar’s rates their securities based on fundamental analysis, so their analysts consider revenues, earnings, and other fundamental business attributes. They use this information to determine the stock’s ‘fair market value.’ From there, you can compare the asset’s current price with Morningstar’s fair value to decide whether it’s a buy.
Other popular research services use more technical analysis techniques to analyze securities. Technical analysis uses mathematical and statistical measurements to identify suitable investments and buying opportunities. Conversely, Morningstar focuses more on underlying businesses and economic trends. Neither approach is superior, but each has different strengths and weaknesses. Morningstar Premium is best suited to investors who prefer investing based on fundamentals.
Morningstar Premium also offers customer support for clients having technical issues. They don’t provide live chat support, but users can contact support via email and phone. There is also a self-service FAQ page that is pretty comprehensive.
Morningstar Review: Value and Price
Morningstar Premium subscribers can also access the full selection of analysis and research tools, including the screener, x-ray, and other advanced tools. The premium service costs $199 for an entire year, which works out to about $29.95 per month of service.
If you don’t know whether Morningstar Premium is for you, you can try it free for two weeks. The free 14-day trial option allows you to test out the platform before committing to a purchase.
$199 a year for expert stock recommendations is relatively reasonable. Competing services can cost more than $300 per year. Given Morningstar’s prestigious reputation in the research community, the subscription cost is an excellent bargain. Morningstar also offers promotional pricing from time to time, so there’s a chance you can get it even cheaper.
Is Morningstar Premium a Scam?
Morningstar has an excellent reputation in the investment community. It’s also one of the top investment research firms in the country. The firm’s asset management business has thousands of clients and manages billions of dollars, so you can rest easy knowing these guys are professionals. Morningstar is a reputable company that won’t steal your money or anything like that.
Is Morningstar Premium Worth It?
Morningstar Premium’s fundamental approach to investing appeals to many people so, if you prefer to trading on fundamentals, it’s a perfect fit. The service is also a great choice for people that meet any of the following criteria:
- People who prefer fundamentals-focused investment analysis.
- Traders looking to diversify their portfolios with new investments.
- Beginners looking for qualified professional advice on a budget.
- You are interested in investing in mutual funds
Morningstar Premium Reviewed: Pros and Cons
- Large research library
- Excellent analysis and portfolio management tools
- Expert ratings and investment picks
- Relatively reasonable pricing
- Company has an outstanding reputation
- Does not contain much technical indicator analysis
- Niche investors might want a more directed information source
- No advisory or management services
Morningstar Premium Review: The Final Verdict
Is Morningstar Premium worth it? We say yes. You can access tons of valuable reports for the cost of a $199 subscription. It’s an excellent value, and it can quickly pay for itself if you use the knowledge correctly. Fundamental analysis is a tried and tested methodology, and it’s relatively easy to understand.
Morningstar’s research library and easy-to-understand rating system also make it an excellent option for beginners. If you’re having trouble finding stock picks, you should look into Morningstar.
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