Morningstar Inc

CME Group reported second-quarter revenues of $1.71 billion, flat year over year and 1.7% above analyst expectations. The company also delivered a decent beat on EBITDA estimates. Its stock has risen 16% since the report and currently trades at $275.30. Among the ten financial exchanges and data stocks tracked, Morningstar posted the strongest quarter with revenue up 9.6% to $663.2 million, while S&P Global was the weakest after full-year EPS guidance slightly missed expectations. The group overall beat consensus revenue estimates by 1.6% and shares are up 8.4% on average since reporting.

MSCI reported second-quarter revenues of $867 million, up 12.2% year over year, in line with analyst expectations but marking the weakest performance against estimates among its peers. The stock has fallen 8.5% since the report and currently trades at $572.27. Among the ten financial exchanges and data stocks tracked, Morningstar posted the best quarter with revenues of $663.2 million, up 9.6% and beating estimates by 2.2%, while S&P Global was the weakest with revenues of $4.15 billion, up 10.4% but issuing full-year EPS guidance slightly below expectations. Nasdaq and Moody's also beat estimates, with Moody's achieving the biggest beat and fastest revenue growth of the group at 15.1%.

Morningstar reported second quarter 2026 sales of US$663.2 million and net income of US$107.8 million, and completed a US$699.97 million share repurchase program. The stock has gained 18.28% over the past month and 17.54% over three months, though its one-year total shareholder return is down 23.57% and five-year return is down 23.52%. Morningstar trades at a price-to-earnings multiple of 17.4x, below the US market average of 19.2x and the US Capital Markets industry average of 37.9x, but above its estimated fair P/E of 14.8x. A discounted cash flow model values the stock at $164.48, below its current price of $195.38.

Morningstar has completed the rebrand of the CRSP Market Indexes to the Morningstar Market Indexes, bringing a large family of widely used market benchmarks directly under the Morningstar brand. These indexes are tracked by products with more than $3 trillion in assets and are used in major futures contracts. The move signals an intent to deepen the company's role in index creation and licensing globally, with established methodologies kept in place. Morningstar's stock last closed at $192.57 and has risen 11.6% over the past week and 18.9% over the past month.

Morningstar reported second-quarter 2026 revenue rose 9.6% to $663.2 million, with organic revenue up 6.8%. Operating income increased 28.4% to $160.6 million, and diluted net income per share climbed 35.4% to $2.83. The company cited Morningstar Credit, Morningstar Direct Platform, and PitchBook as the largest contributors to organic revenue growth. Cash provided by operating activities jumped 57.3% to $155.7 million, while free cash flow nearly doubled to $122.5 million. Morningstar repurchased 567,844 shares for $100.0 million during the quarter.

Intercontinental Exchange reported first-quarter revenues of $2.98 billion, a 20.4% increase year on year, exceeding analyst expectations by 1.2%. The company also beat earnings per share estimates, marking what was described as a satisfactory quarter. Despite the results, the stock fell 9.1% since reporting and currently trades at $141.99. Among the ten financial exchanges and data stocks tracked, the group overall beat revenue consensus by 1.1%, with Morningstar posting the biggest beat and CME Group the weakest performance.

CME Group reported first-quarter revenues of $1.88 billion, up 14.5% year on year but falling short of analysts' expectations by 1.4%, making it the weakest performer against estimates among the ten financial exchanges and data stocks tracked. The group as a whole beat consensus revenue estimates by 1.1%, with Morningstar delivering the biggest beat at 2.9% on revenues of $644.8 million. FactSet posted the slowest revenue growth of the group at 6.4% to $622.9 million, while Moody's and MSCI reported revenues of $2.08 billion and $850.8 million, respectively. CME Group's stock has fallen 13.6% since reporting, contrasting with gains for FactSet, Moody's, and MSCI.

StockStory identified two value stocks to own for decades and one to ignore. Morningstar, trading at $165.15 per share with a forward P/E of 14.1x, is favored for its 11.5% annual sales growth over five years and 40.7% annual EPS growth driven by share repurchases. EQT, priced at $51.33 with a forward P/E of 13x, is highlighted for its 15.4% annual revenue growth over ten years and a robust free cash flow margin of 29.6%. Asana, at $7.14 and a forward P/S of 2x, is flagged as a sell due to disappointing 9.6% average ARR growth and a net revenue retention rate of 96%.

Financial exchanges and data stocks reported a satisfactory first quarter, with aggregate revenues beating analyst consensus estimates by 1.1%. S&P Global posted revenues of $4.17 billion, up 10.4% year on year and exceeding expectations by 2.4%, though full-year EPS guidance slightly missed. Morningstar delivered the biggest beat among peers with revenues of $644.8 million, up 10.8% and topping estimates by 2.9%, while CME Group was the weakest performer, with revenues of $1.88 billion missing estimates by 1.4%. Nasdaq reported revenues of $1.41 billion, up 13.7% and beating by 2.2%, and MSCI posted revenues of $850.8 million, up 14.1% and beating by 1.4%. On average, share prices of the group are down 5.6% since the latest earnings results.

Retirees who relied on money market funds yielding above 5% in 2023 and 2024 now face a significant drop in income as the Federal Reserve holds its target range at 3.50% to 3.75% through the first half of 2026. BlackRock's 2026 Income Outlook estimates that a retiree collecting about $53,000 annually on a $1 million cash position at peak rates could see that figure fall below $40,000 by late 2026. U.S. money market fund assets stood at $7.9 trillion in late June 2026, according to Investment Company Institute data, while global balances are near $9.1 trillion. BlackRock's Read on Retirement survey found that only 27% of current retirees feel very financially prepared for the rest of retirement, down from 43% in 2020, with roughly two-thirds worried about exhausting their savings. BlackRock and LPL Research both conclude that fixed income returns in 2026 will come from income generation rather than price gains, with LPL Chief Fixed Income Strategist Lawrence Gillum favoring neutral duration and the belly of the yield curve out to five years, while BlackRock leans into securitized credit, collateralized loan obligations, and investment-grade corporates. Morningstar's research suggests that a 30-year TIPS ladder can support an inflation-adjusted withdrawal rate of 4.8%, compared with 3.9% for the highest-performing traditional portfolio, though it fully depletes after 30 years. BlackRock also highlights that the top 10 S&P 500 companies now account for roughly 40% of the index's value with an average dividend yield of just 0.44%, amplifying the need for diversified retirement income.

Wall Street analysts have set price targets implying returns above 20% for several stocks, but independent analysis suggests not all bullish calls are justified. Meta Platforms carries a consensus price target of $828.80, a 47% implied return from its $563.74 share price, supported by 27.1% annual growth in average revenue per user and a 61.8% EBITDA margin. Morningstar has a $246 target, implying 57.9% upside from $155.75, backed by 11.5% annual revenue growth over five years and a 17.1% return on equity. In contrast, KBR’s $46.57 target implies a 38.1% return from $33.73, but its backlog has declined 1.2% on average over two years and its operating margin is a subpar 6.9%, raising concerns about demand and competitive positioning.

Morningstar is rolling out Microsoft 365 Copilot integrations that bring its research and analytics directly into tools like Outlook and Excel, while also launching new daily valuation indexes for the collateralized loan obligations market in collaboration with Houlihan Lokey. The Copilot integration aims to embed Morningstar's analyst reports, fund data, and models into the workflows of advisors and analysts, helping the company compete with data providers such as S&P Global, FactSet, and Bloomberg. The new Morningstar Houlihan CLO Indexes extend Morningstar's index business into private credit, targeting growing demand for transparency in CLOs and leveraged loans. These moves come as Morningstar's stock recently closed at $154.65, down 12.5% over the past 30 days and 50.2% over the past year.

Morningstar and Houlihan Lokey are collaborating to launch a new suite of daily valuation indexes for the collateralized loan obligation market later this year. The Morningstar Houlihan CLO Indexes will combine Morningstar's index design and governance with Houlihan Lokey's valuation framework and credit market expertise to provide reliable benchmarks in the rapidly expanding CLO market, which has grown to more than $1.5 trillion in assets and could exceed $3 trillion by 2030. The indexes aim to improve transparency and consistency in a market where the availability of frequent pricing and benchmarks has not kept pace with growth. Sanjay Arya, head of innovation for Morningstar Indexes, said the collaboration addresses a clear investor need and will bring more transparency to private markets, while Dr. Cindy Ma, managing director and global head of portfolio valuation and fund advisory services at Houlihan Lokey, noted that data, transparency, and advanced analytics are becoming critical competitive differentiators for investors.

MarketAxess reported first-quarter revenues of $233.4 million, up 11.9% year on year and exceeding analysts' expectations by 0.6%. The electronic bond-trading platform also delivered a solid beat on EBITDA estimates. Among the ten financial exchanges and data stocks tracked, the group overall posted a satisfactory quarter with revenues beating consensus by 1.1%, though share prices have fallen an average of 7.4% since reporting. Morningstar was the best performer against estimates with revenues of $644.8 million, up 10.8% and beating by 2.9%, while CME Group was the weakest, with revenues of $1.88 billion missing estimates by 1.4%. MarketAxess shares have declined 19.2% since the report and currently trade at $120.33.

StockStory identified three small-cap stocks that could thrive despite market consolidation by large companies. Zurn Elkay, with a market cap of $8.03 billion, boasts a 42.6% gross margin and has improved its operating margin by 3.7 percentage points over five years. Morningstar, valued at $6.74 billion, achieved 11.5% annual sales growth over the last five years and has a strong return on equity. Skyward Specialty Insurance, at a $2.06 billion market cap, expanded net premiums earned by 27.6% annually over two years and projects 25.6% revenue growth in the next 12 months.

Morningstar Wealth is collaborating with Apollo, Franklin Templeton, and JPMorgan to launch research-driven public and private market model portfolios. The initiative aims to give financial advisors access to diversified portfolios that include private market exposure through interval funds, combining Morningstar's independent research with open-architecture allocations from multiple asset managers. The move comes as Morningstar's stock has been under pressure, recently closing at $153.68 and down 27.0% year to date, with a decline of 48.8% over the past year and 35.5% over five years. The collaboration highlights how Morningstar is leaning on its research capabilities to stay relevant for advisors rethinking portfolio construction, and its success may depend on how quickly advisors adopt these models across different client segments, particularly where demand for alternative assets is growing.

Morningstar's board of directors declared a quarterly dividend of 50 cents per share, consistent with the dividend paid in April. The dividend is payable July 31, 2026, to shareholders of record as of July 10, 2026.