We believe that Morningstar’s size and stranglehold on the rating industry do not serve investors’ best interests. Receive in-depth reports on 10 funds that we think Morningstar’s backward-looking ratings have dead wrong.
Only one sector, Consumer Staples, earns my Attractive rating. See Figure 1 for my ranking of all ten sectors. My sector ratings are based on the aggregation of my fund ratings for every ETF and mutual fund in each each sector.
MSFT gets my best rating because the company’s ROIC, at 72%, ranks 8th in the S&P 500 while its stock price (~$31.52/share) implies the company’s profits will permanently decline by about 20%. High profitability and low valuation create excellent risk/reward in a stock. Here is my free report on MSFT.
Here is a quick guide to the basics of the New Constructs website.
QUESTION: Why should fund investors rely on backward-looking NAV trends?
ANSWER: They should not.
The Portfolio Management Rating of a fund is based on the aggregated ratings of the securities it holds as well as its overall Asset Allocation. When analyzing equity funds, we use New Constructs’ stock ratings, which are regularly featured as among the best by Barron’s over the past three years.