Valuations are high, but Morningstar's quantitative equity ratings uncover two key areas to consider.
Regulation, rates, and real estate all made headlines in the financial-services sector in recent months and could create ongoing headwinds for several firms.
Planned consolidation should contribute to better pricing power in this shrinking industry, but one name stands out among the rest.
These two Australian energy companies should see strong returns over the next decade.
Although inflation has ticked up from 2013 levels, it remains below its historical average and a long way from a worrisome level, says Morningstar's Bob Johnson.
Facebook makes the most of mobile, focus pivots to Apple's pipeline, Chipotle may be moat-worthy, and more.
This company regularly considers an additional fifth special dividend per year, which can turn into a nice payout for shareholders.
Brand power can create strong competitive advantages in the consumer sector, but cost advantages and network effects also can play big roles.
Investors concerned about putting money to work in a fully valued equity market might find comfort in these conservatively managed portfolios, says Morningstar's Russ Kinnel.
With its size-meets-value approach, this large-cap fund could be a suitable core holding.