Markets Ken Fisher: Meet the new market darling rivalling tech’s cosmic growth
Hence, telecoms led world stocks in 10 of 11 broad market drops exceeding -10 per cent since 2000. But good defence meant bad offense: telecoms lagged in 10 of 11 upturns. The average underperformance? A whopping 28 percentage points! In case you missed it Greg Kavanagh accuses Co Wicklow widow of ‘purposely withholding evidence’ from High CourtInside story: New era at Bank of Ireland’s Davy but staff fret over cuts and cultureLandmark planning laws won’t be subject to ‘full range’ of quality checksExclusive interview: Phil Hogan on Golfgate, Varadkar, Fine Gael’s election chances and Trump
Tech-like tendencies Large swaths of this diverse sector act like tech: low dividends, fat gross operating profit margins , big reinvestment in innovation and huge growth.Interactive media and services is up 34.7 per cent globally year-to-date, driving communication services’ 24.8 per cent overall return. That is right behind tech’s 32.6 per cent—and trounces world stocks’ overall 17.7 per cent climb.
Few envisaged tech-like parts of communication services soaring back in late 2022—just the opposite, after their painful lag on the way lower. But they did! Sentiment got too sour toward their outlook.Market pre-pricing proved prescient. Interactive media and services’ Q1 earnings per share soared 31.0 per cent year-over-year, clobbering world stocks’ overall 2.9 per cent EPS growth. World communication services’ EPS grew even more—46.2 per cent year-over-year.