Skip to Content
US Videos

3 Overlooked High-Quality Stocks

Our analysts are excited about these names.

Mentioned: , , , ,

Today we're looking at three high-quality stocks that our analysts like.

Investor sentiment on wide-moat Bank of New York Mellon has soured, and as a result, it trades at a larger discount to our fair value estimate compared to other pure-play custodian banks. BNY Mellon and the custody banks in general do face headwinds, but we think it's important not to overstate the negatives. Though low interest rates will weigh on the firm, most of its revenue is fee-based, and its conservative balance sheet means the firm has only low credit risk. We believe there are pockets of growth for BNY Mellon, notably its Pershing business. In addition, compared with State Street and Northern Trust, BNY Mellon is more diversified and has less exposure to equity market movements. As a result, we believe shares of BNY Mellon present an attractive risk/reward profile.

Morningstar does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.