Morningstar | MORN | Long at $154.15

Feb 12

Technical Analysis

• Price for Morningstar MORN has fallen just below my "crash" simple moving average zone (green lines). The "major crash" zone (gray lines) extends down between $136 - $119 and there is a high possibility the price may dip that low in the near-term (especially to close the last price gap since the pandemic at $115). Long-term, given the potential earnings and revenue growth, it looks undervalued at its current price.

Earnings-Per-Share and Revenue Growth Between 2025 & 2028

• Projected Earnings-Per-Share Growth: +60.1% (from $9.43 in 2025 to $15.13 in 2028)
• Projected Revenue Growth: +29.1% (from $2.4 billion in 2025 to $3.1 billion in 2028)

Health

• Debt-to-Equity: 0.7x (good)
• Altman's Z-Score/Bankruptcy Risk: 4.8 (excellent / low risk)
• Quick Ratio/Ability to pay current bills: 1 (okay, ideally between 1.5 and 3)

Insiders

• Major selling (**warning**) and no buying

Action

• Due to the good growth potential of MORN and the technical analysis position, I am personal creating a starter position at $154.15. I am not positive the price will stay in the "crash" zone, though. If it does fall into the "major crash" area and close the $115 gap, a heavier position will be opened at that level.

Targets in 2028

1. $175.00 (+13.5%)
2. $197.00 (+27.8%)

Feb 26

Trade active

Target #1 reached resulting in a +13.5% gain.

Jun 11

Trade closed: target reached

Closed out of entire position at $185.50 for a final +17.1% gain. Hoping for a better entry if this crashes near $115. If not, all good.