Morningstar’s Rally Is Stretched

  • Terrific corporate performance and the shares have been on an enormous winning streak with the RSI reaching 95.
  • The shares need cooling off, as valuations are substantial and the performance was boosted by temporary tailwinds.
  • Revennue growth is likely to continue and buybacks are another source of EPS growth, but we don’t see much room for margin expansion and valuation multiples are stretched.

Source: Morningstar’s Rally Is Stretched – Morningstar, Inc. (NASDAQ:MORN) | Seeking Alpha