Strong drug sales helped wide-moat J&J report a steady quarter, but increasing competitive threats to leading drugs and a relatively weak late-stage pipeline will be headwinds in the future.
Shareholders will be rewarded with higher quality earnings going forward as GE takes the next step in transforming the company, writes Morningstar’s Barbara Noverini.
Near-term execution issues have left BG Group shares in the bargain bin, but Shell is still paying a hefty price for the firm, writes Morningstar analyst Stephen Simko.
FedEx's $4.8 billion bid for TNT will combine two firms with quite different strengths while boosting global delivery cost advantages, writes Morningstar analyst Keith Schoonmaker.
Given the power and advantages that large PBMs possess along the pharmaceutical supply chain, UnitedHealth’s deal for Catamaran makes complete sense, writes Morningstar’s Vishnu Lekraj.
The deal, which would make Kraft-Heinz the third-largest food and beverage firm in North America, stands to enhance Kraft's narrow moat, writes Morningstar's Erin Lash.
Berkshire joins forces with 3G Capital to facilitate merger.
The Apple Watch will help create more stickiness in the iOS ecosystem and help drive repeat sales of high-margin iPhones, writes Morningstar’s Brian Colello.
Results of adverse scenarios are generally in line with Morningstar's own Stress Test analyses.
Many of HP's stumbles during the quarter appear to be isolated, but we would seek a wider margin of safety before buying, writes Morningstar's Pete Wahlstrom.
Warren Buffett’s Berkshire Hathaway had a shift in strategy in the fourth quarter as it unloaded most of its energy holdings to buy more of Deere and IBM.
Fees and expenses are often hidden and complicated. It's time to show investors what they're paying for.
Coke delivered a solid quarter, but our long term-assumptions for the firm remain in place, writes Morningstar‘s Adam Fleck.
We still question Twitter's ability to reach the scale of the Internet giants, writes Morningstar’s Rick Summer.
Despite the high 39% premium to Hospira's stock price, we believe the acquisition price is justified based on Pfizer's ability to unlock more value with its global reach.
Chipotle continues to post impressive results, but the market may be underestimating long-term competitive threats, writes Morningstar’s R.J. Hottovy.
A strong earnings report has catapulted Disney’s shares, but we’d wait for a larger discount to our fair value before investing, writes Morningstar’s Neil Macker.
Shares looked modestly undervalued as management’s investments are masking the potential for operating margin expansion, writes Morningstar’s Rick Summer.
The retail giant's results point to longer-term margin potential, but the profitability expansion will be slow and uneven, writes Morningstar's R.J. Hottovy.
Alibaba’s lower-than-expected revenue growth is not a cause for concern as the firm continues to build its network effect, writes Morningstar’s R.J. Hottovy.
Facebook remains one of highest-quality businesses in the Internet sector but investors should wait for a larger margin of safety before buying shares, writes Morningstar’s Rick Summer.
Despite an improving pipeline and slowing patent losses, a lackluster growth outlook will likely drive Pfizer to acquire assets in the near term.
We’re lowering our fair value estimate for Procter & Gamble due to the negative impact of currencies, but the firm’s underlying business is gaining traction and shares look modestly undervalued.
Morningstar is raising its fair value estimate for Apple after iPhone 6's spectacular start.
The firm's shift to a cloud, mobile, and services model progresses, while the core commercial business--last quarter's difficult comparisons aside--remains solid.
We expect to raise our fair value estimates but don't anticipate changing either company's no-moat rating following news of the deal.
The firm's diversified industrial portfolio delivered a solid quarter of growth as ongoing momentum in several U.S. end markets more than offset weakness in energy.
The pharmaceutical giant turned in an in line fourth-quarter, but new competition and a strong dollar will slow growth in 2015, writes Morningstar’s Damien Conover.
The oil-services firm showed strength in the fourth quarter, but management is preparing to cut costs to ride out weakening market conditions, writes Morningstar’s Jason Stevens.
We like wide-moat Intel's long-term positioning, but investors should seek a wider margin of safety before buying, writes Morningstar's Peter Wahlstrom.
The carried interest loophole for hedge funds should be closed, with the proceeds helping to pay for removal of the punitive taxes borne by fund investors.
The firm continued its progress on the expense front in the fourth quarter, but further improvement will be harder and regulatory woes will persist, writes Morningstar’s Jim Sinegal.
Factors outside management's control will determine the extent of earnings improvements over the medium term, writes Morningstar’s Jim Sinegal.
Understanding a firm's culture is paramount to predicting its stability.
OPEC's decision to maintain production quotas has sent oil prices lower and created a number of good opportunities to buy quality businesses.
Large gas production and downstream operations will help mitigate the earnings impact of lower oil prices and should allow higher-quality firms to avoid dividend cuts, writes Morningstar’s Allen Good.
OPEC’s decision to maintain production quotas has sent oil prices lower and created a number of good opportunities to buy quality businesses, writes Morningstar’s Jason Stevens.
The numbers suggest we do quite a bit of damage to our portfolios through poorly timed investments. Here's some corrective medicine.
The wide-moat pharmacy benefit manager--which is currently rated 4 stars by Morningstar--was Berkshire's only new money purchase during the third quarter.
Given the commodified, low-growth nature of the battery business, Berkshire's exchange of P&G shares for Duracell may have some other motivations.
Wide-moat Berkshire Hathaway saw solid top-line results from each of its main segments, but losses from investments, derivatives, and eliminations sent earnings lower.
The Chinese e-commerce giant’s first public update shows the power of the firm’s network effect, though shares are slightly overvalued at today’s levels, says Morningstar’s R.J. Hottovy.
Shares are still overvalued today, but dramatic expense growth could spook short-term oriented investors and create a compelling entry point in this wide-moat social network, says Morningstar’s Rick Summer
The slowdown in user growth, and subsequent fall in Twitter’s stock price, hasn’t created a buying opportunity for this narrow-moat firm, says Morningstar’s Rick Summer.
The data doesn't necessarily support the notion that investors have gotten religion about passive investing.
We’re lowering our fair value estimate for the Internet giant after a disappointing third quarter, but we still see shares as undervalued and the firm as a disruptive force.
The wide-moat firm's cloud initiatives were the highlight for the quarter, but we’d wait for a larger margin of safety before investing, says Morningstar’s Norman Young.
Cost-cutting moves, share buybacks, and energy and transport sales powered the wide-moat firm in the third quarter, says Morningstar’s Kwame Webb.
We believe in Coca-Cola's long-term earnings growth potential, but we plan to lower our fair value estimate after a tough third-quarter.
We will likely trim our fair value estimate for McDonald’s as the firm struggles to keep pace with evolving consumer tastes.