'Steady' stocks and why they may be too good to be true: Morningstar equity analyst Brett Horn. Brett Horn, Equity analyst at Morningstar, looks at two stable...

'Steady' stocks and why they may be too good to be true: Morningstar equity analyst Brett Horn. Brett Horn, Equity analyst at Morningstar, looks at two stable bank technology companies: Fiserv and Jack Henry to demonstrate the challenges of stock picking. Fiserv and Jack Henry's businesses are in core processing; offering banks day-to-day operating systems and the two companies leverage these basic relationships to cross-sell supplementary services such as electronic bill payment or online banking. From the surface, the companies have stable business models, with around 85% recurring revenue under long-term contracts, however the market price implies continued improvement in growth rates and Horn believes the growth rates Fiserv and Jack Henry can achieve are limited by maturity of the US banking industry. (VIEW LINK)