8 Business Services Stocks Bought with Conviction
Accenture and Apollo topped the list of purchases by our Ultimate Stock Pickers.
By Todd Young | Senior Stock Analyst
When we did a preliminary run-though of the holdings of several of our Ultimate Stock-Pickers back in August, our inspection uncovered more than a few high-conviction purchases, such as Accenture (ACN), McGraw-Hill (MHP), and Paychex (PAYX), in addition to the health-care names that these managers were buying. While purchases in the health-care sector seemed to be the predominant theme during the most recent period, we were impressed by the number of business services stocks (like Accenture and Paychex) that were also purchased with conviction by our Ultimate Stock-Pickers.
The business services sector, which is a distinct Morningstar sector designation, includes everything from railroads, such as Burlington Northern (BNI), and logistics firms, like FedEx (FDX) and United Parcel Service (UPS), to education providers, such as Apollo Group (APOL), and credit card payment processors like Visa (V) and MasterCard (MA). While this sector's representation remains relatively small, at less than 7% of the aggregate holdings of the 26 managers on our Investment Manager Roster, it is much larger than what is found in the benchmark S&P 500 Index (SPX), where the Morningstar business services sector makes up less than 4% of the index.
The Morningstar Ultimate Stock-Pickers Team does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.
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