5 Stocks to Keep an Eye On
We recently brought these narrow-moat names under analyst coverage.
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Mentioned: LPL Financial Holdings Inc (LPLA)
, Paylocity Holding Corp (PCTY)
, Paycom Software Inc (PAYC)
, Zoom Video Communications Inc (ZM)
, Slack Technologies Inc (WORK)
, Donaldson Co Inc (DCI)
, Nordson Corp (NDSN)
During the past month, Morningstar's equity research team began covering 2019 IPOs Slack (WORK) and Zoom (ZM). Right now, we're not confident that either company can earn excess returns on its invested capital over the next decade, reports analyst Dan Romanoff. As such, we've assigned no-moat ratings to both.
But our analysts have initiated coverage of five other companies in the past several weeks that they think can earn excess returns over the next decade--we've assigned these companies narrow Morningstar Economic Moat Ratings. Although all of these stocks are fairly valued today according to our metrics, they're definitely good ideas for a watchlist.
Susan Dziubinski does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.