Morning Star and Market Edge ratings

407 Views | 3 Replies | Last: 11 hrs ago by Woods Ag
Ag00Ag
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AG
How much stock (pun intended) do you put into the ratings of stocks and ETF's from Morning Star and Market Edge and the like?

I have a couple of ETF positions I'm long on that they are really down on. Positions that have done pretty well for me in 2025. I see the ratings on the market research function on my Schwab acct. and they seem to be really dogging a couple that I feel pretty good about.
PDEMDHC
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AG
Went to a Charles Schwab stock and options training class with 900 people the last weekend.

The younger (in her 30s) presenter on her TA section used a few blue chip stock examples and then went to Applied Digital (APLD) as one breaking out. Has an F rating and the bosses running it were proud of her for that example.

In short, they didn't care except for TA showing a breakout to make money on the upside.
Ag00Ag
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AG
I'm really curious how these "ratings" are derived.

For Example, I hold some VUG which returned 21.2% for 2025. Morning star give VUG an overall 4 star rating with above average retruns and average risk. Market edge says "AVOID, if you are long close position, not a short sell candidate."

Just trying to understand
Woods Ag
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AG
They seem like automated ratings to me. No intelligent/nuanced thought. Just some computer generated stuff based on a few variables that have been selected as drivers.

I look at them bc I look at everything but I don't put much stock into them.
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