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Our Picks

Companies that Make the Grade

These firms earn topnotch marks in a variety of areas.

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It's tough to excel in everything. Just as the same people who get A's in English literature don't often outshine in physics and math, it's rare to find companies that get topnotch grades in a variety of areas. A company might pursue growth at the expense of profitability (think  AOL Time Warner (AOL)), or sacrifice a little growth for better financial health (think  Novartis (NVS), which has historically had sluggish growth but a pristine balance sheet).

For this week's Five-Star Investor, we'll focus on companies with topnotch Morningstar grades in three areas: growth, profitability, and financial health. Our stock grades are based on the company's underlying financial statements. They take into account both the strength of the company relative to other companies in the same sector, as well as recent trends in financial performance.  

Amy C. Arnott has a position in the following securities mentioned above: EXPD. Find out about Morningstar’s editorial policies.

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