This is the window of time when value can outperform growth in the stock market

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 97%

Österreich Nachrichten Nachrichten

Österreich Neuesten Nachrichten,Österreich Schlagzeilen

So far this year, large-cap value stocks have been outperforming growth stocks. Here’s how long the trend can last. Companies categorized as “value” are expected by analysts to increase earnings more quickly than their growth peers.

But so far this year, large-cap value stocks — those that typically trade lower to book value and earnings and have slower growth rates — have been outperforming growth stocks.

See this one-year chart through Jan. 14 showing total returns, with dividends reinvested, for the S&P 500 Index SPX, -1.84% and two overlapping subsets of the benchmark, the S&P 500 Growth Index and the S&P 500 Value Index: Another way to test Buckingham’s statement is to look at relative forward price-to-earnings multiples for exchange traded funds that track all three groups of large-cap stocks:

Value’s surprise earnings power Investors rightfully expect growth stocks to increase sales and earnings more quickly than value stocks. Looking at weighted aggregate consensus estimates for the ETFs, as calculated by FactSet, analysts expect the growth group to increase sales more quickly, as usual. But look at the earnings-per-share estimates:

There are 239 stocks in the S&P 500 Growth Index, and it is highly concentrated, with the five largest holdings of the SPDR S&P 500 Growth ETF making up nearly 44% of the portfolio. The biggest holding is Apple Inc AAPL, -1.89%, at 13.3%, followed by Microsoft Corp. MSFT, -2.43%, at 11.4%, then Alphabet Inc.’s Class A GOOGL, -2.50% and Class C GOOG, -2.50% shares at a combined 8%. Amazon.com Inc. AMZN, -1.99% is at 7%, and Tesla Inc. TSLA, -1.82% at 4.2%.

Wir haben diese Nachrichten zusammengefasst, damit Sie sie schnell lesen können. Wenn Sie sich für die Nachrichten interessieren, können Sie den vollständigen Text hier lesen. Weiterlesen:

 /  🏆 3. in AT
 

Vielen Dank für Ihren Kommentar.Ihr Kommentar wird nach Prüfung veröffentlicht.

Österreich Neuesten Nachrichten, Österreich Schlagzeilen

Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.

Stock Market Sell-Off Continues As Rates Surge, Goldman Sachs Falls 8%Stock market sell-off continues as rates surge, Goldman Sachs falls 8% by skleb1234
Herkunft: Forbes - 🏆 394. / 53 Weiterlesen »

European stocks set to fall slightly as markets mull Fed, earningsEuropean stocks are set to open fractionally lower on Tuesday as global investors remain attuned to the policy direction of the U.S. Federal Reserve and the start of earnings season
Herkunft: CNBC - 🏆 12. / 72 Weiterlesen »

Moviegoers Will Inspire New Growth in the NFT Collectibles Market | HackerNoonNFTs provide access to a strong community where members share the same vision and long-term approach towards NFTs. This is one main reason why NFTs caught fire so quickly.
Herkunft: hackernoon - 🏆 532. / 51 Weiterlesen »