Is Morningstar The Best Swing Trading Alerts Service

Jeremy BiberdorfBy: Jeremy Biberdorf

October 6, 2023October 6, 2023

Morningstar Logo

Established in 1984, Morningstar has been a trusted source for investment analysis and the latest stock market news.

But did you know there’s more to this reputable platform than meets the eye? Besides stock research, Morningstar also manages assets, boasting a total AUM close to $250 billion. The platform stands out as one of the best seeking Alpha alternative for traders who are

Surprisingly, not everyone is aware that Morningstar is publicly traded under the ticker symbol NASDAQ: $MORN, with a market capitalization exceeding $10 billion. Furthermore, it holds a position in the Russell 1000 index! For a more detailed review, check out our  Morningstar Review.

Learn More About Morningstar

Pros and Cons of Morningstar

Pros

  • Morningstar offers in-depth stock and fund analysis
  • Intuitive interface
  • A free 14-day trial
  • The well-designed mobile app
  • Its news and analysis are trusted worldwide,
  • Features like stock screeners and Portfolio X-rays are user-friendly and beneficial.
  • Many of the premium features are available for free on other sites.

Cons

  • Morningstar mainly emphasizes funds over stocks

A Closer Look: Morningstar Review

Anyone, including individual investors and swing traders, can turn to Morningstar for reliable market research and news.

However, if you’re contemplating using the site for investment research, it’s vital to ensure your reliance on stock fundamentals.

Morningstar furnishes comprehensive fundamental information for stocks and mutual funds, encompassing balance sheets and past performance, but don’t anticipate technical analysis or charting here.

The well-recognized Morningstar rating system is a global standard for stock valuation. However, this system adopts a backward-looking approach. If you’re a forward-looking investor, this might not align with your trading style.

Pricing Overview: How Much Does Morningstar Cost?

When it comes to pricing, Morningstar showcases reasonable rates, particularly if you opt for a multi-year membership, offering different pricing tiers in its Premium package:

  • Monthly: $29.95 (Annual Cost: $359.40)
  • Annual: $199.00 (Annual Cost: $199.00)
  • Two-Year rate: $349 (Annual Cost: $174.50)
  • Three-Year rate: $449 (Annual Cost: $149.67)

Subscribing to Morningstar Premium grants you full access to an array of features, including some of the market’s best stock and fund research tools, emphasizing fundamental stock analysis. Here, you’ll likely delve into data rather than examining stock charts.

The Premium account offers you insightful analyst reports, providing forward-looking perspectives incorporating Morningstar ratings in their analysis.

These reports cover various aspects like business strategy, economic moat, fair value, and risk, giving you a comprehensive snapshot of the company.

This can be especially helpful for those seeking to understand a company without sifting through extensive filings.

For additional information and potential savings, consider using our Morningstar Coupon Code and this link as well.

Tools and Features

In your journey to make well-informed decisions in the stock market, Morningstar offers tools that could be valuable.

Investments/Fund Analysis

The Best Investments/Fund Analysis feature is rather straightforward; it presents you with top fund and stock picks based on the best ratings and analyst recommendations.

If you’re thinking of using Morningstar, especially if you have a premium subscription, you’ll appreciate that this feature allows for tracking and analyzing your actual portfolio within the platform.

It can provide insights to help balance and diversify your holdings, aiding both buy-and-hold and ETF investors.

Stock/Fund Screeners

Here, Stock Rover could serve as an alternative for experienced investors seeking a platform with a variety of tools. Yet, Morningstar’s Stock/Fund Screeners save you from the additional cost of subscribing to a separate stock screener.

These screeners can be invaluable, ensuring you don’t need to sift through thousands of stocks and funds. It narrows down the list according to your search criteria, which can be particularly useful for an experienced trader or even a day trader looking for quick trading opportunities.

Portfolio X-Ray

One might ponder on the accuracy of Morningstar’s features, such as the Portfolio X-Ray. This tool stands out as it offers in-depth portfolio analysis, allowing investors to scrutinize their funds using the platform’s renowned rating system.

It offers suggestions for funds inclusive of stocks that may optimize one’s portfolio, making the task less tiresome for institutional investors seeking to match their investing style with the right funds.

Accuracy of Morningstar Rating System

Doubting the accuracy of the Morningstar rating system is only natural, especially since it’s the cornerstone of the financial site and is used by many institutions globally.

But, should one solely base their investments on this star system? After all, renowned stocks like Apple only garner a three-star fair value rating on the site.

Countless brokerages and banks, and even tools like the FINRA mutual fund analyzer, rely on Morningstar ratings. It raises the question of how it can be anything but reliable. The truth, however, isn’t as black and white.

Morningstar’s rating system is predominantly a reflection of past performance compared to similar assets. It serves as a historical indicator but doesn’t provide a forward-looking outlook. It’s pivotal to remember past performance doesn’t guarantee future results.

Morningstar allocates ratings on a peer-adjusted basis, focusing on how it compares to the performance of other funds and applying an average-weighted rating. This implies that historical outliers are given little weightage, focusing mainly on the median performance during the given period. The entire metric system in Morningstar is risk-adjusted, indicating that ratings can fluctuate with market variations.

Even Morningstar advises investors not to rely solely on the rating system for buying or selling an asset. It should be used as a guideline to analyze past performance.

It’s always advisable to conduct your own research and due diligence, even if you’re investing in a subscription research service like Motley Fool Stock Advisor.

Is Morningstar The Best Swing Trading Alerts Service

When you weigh the pros and cons, it’s clear that the benefits of a Morningstar Premium account tend to outweigh the drawbacks.

Spending $199 for an annual subscription may seem like a bit, but when you think about it, you are gaining access to information and analysis that’s trusted by individuals and institutions all around the globe. That’s not a huge price to pay, right?

Morningstar does give you what you need to grow as a long-term investor. But it’s fair to say the platform is more tailored towards investors rather than traders. Why is that? A big reason is Morningstar’s focus on mutual funds over individual stocks.

If you’re alright with putting your money into funds and letting it grow, enjoying a low-stress, hands-off investment style, then Morningstar is what you’re looking for.

On the other hand, if you’re a trader who enjoys diving into charts and exploring trade options, your experience with Morningstar might be different. You might not find it as fitting as a more dedicated stock research website would be. The platform is especially beneficial for those who prefer a more passive investment approach.

At the close of the day, what’s really important? It’s whether your investment grows. The bottom line is a subscription to Morningstar Premium can help guide you to be a more profitable investor. That’s the real goal, isn’t it?

And if you’re keen on exploring more options, remember there are other apps and platforms available that might suit your specific needs and preferences better. After all, finding the right fit is essential in your investment journey.

Wrapping Up

Morningstar serves as a valuable resource, particularly for those focusing on financial metrics and stock fundamentals.

While it may not cater to every individual’s trading style or preferences, it remains a reputable name in the industry, offering a range of services to assist in informed decision-making.

Remember, staying informed and conducting thorough research is key, regardless of the investment path you choose. Click here to sign up and see what the platform has to offer.

Get Started With Morningstar

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Jeremy Biberdorf
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He's a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.

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