That might make some investors think about. But Jared Woodard, head of Bank of America's research investment committee, is focused on another aspect of spending. He's developed a way to find the companies that are most effective at taking that spending and turning it into revenue.
Woodard and company are isolating the companies whose revenue growth over the last eight years can best be explained by three types of spending: Capital equipment; selling, general and administrative; and research and development. Not surprisingly, the very best stocks by that measure are doing extremely well. Their top nine stocks have returned an average of 60.4% over the past year. The Russell 3000 index is up about 7% over that period.
"Regardless of the policy environment, history shows strong outperformance for the stocks of companies that show a strong link between higher capex or R&D and higher revenue. It tends to be an all-weather market theme," he said. Here are Woodard's top nine stocks as measured by the revenue returns they're generating on investments in their business. All nine have "Buy" ratings from Bank of America. They're ranked from lowest to highest based on how much of that revenue is attributable to the research investments they've made.
XeuleBot
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Nigeria Nigeria Latest News, Nigeria Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How health insurance companies deceive Americans into paying more - Business InsiderI was a health insurance exec for 20 years and shamefully lied to Americans about the drawbacks of a single-payer system. I'm coming clean amid the disastrous response to the pandemic. (by wendellpotter) wendellpotter if insurance cost/risk is based on the number of people per risk pool, the cost is lower per person with fewer (a single) pool. wendellpotter Maybe he’d like to show his remorse by donating of his all stock options or proceeds from stock options, and bonuses that I’m sure he carnivorously consumed off the people’s premiums while employed to a Covid fund? You know, put his money where his pie hole is? wendellpotter When you turn a basic human right -such as our health- into a business, people suffer and die. When is America going to wake up?
Source: BusinessInsider - 🏆 729. / 51 Read more »
Airbnb is under scrutiny for how the company laid off 1,900 employees - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Funny, they should have known that the only 'trust' the company has is to make and keep M O N E Y, not pay it out in salary. They are all expendables: in order to make and keep a bottom line. It's simple. Snowflakes-- they are getting hit hard, therefore the only way to survive is to trim the fat. Lol why you even make this article ? This is true for every person that's ever been laid off, Airbnb employees aren't any different.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Why I bought life insurance when I already had coverage from work - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Last to die is great insurance to ensure a legacy for your children.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Stock market crash: Expert warns of Great Depression-era valuations - Business Insider'The outcome will be catastrophic': A renowned stock bear says current market valuations rival that of the Great Depression — and warns a return to normalcy will be accompanied by a 66% crash On Friday I went out of everything except gold sure we may get a nice little pop in the market but it's low volume price action and too expensive. My other traders are doing the same If it comes off 30% on Monday new money will sweep in. But long FNV gold is free money.
Source: BusinessInsider - 🏆 729. / 51 Read more »
Netflix Q2 earnings reaction: Analysts weigh profit miss, future stock price - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Your company brand identity here............
Source: BusinessInsider - 🏆 729. / 51 Read more »
Nio stock price plummets 18% after Goldman downgrades to sell - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. In my experience when GS downgrades the drop is the bottom. $NIO Clickbait. Tesla shouldn’t be in the title, just put Nio plummets 18%. Tesla is the Tesla of China. Get your story right. Goldman downgraded NIO of China.
Source: BusinessInsider - 🏆 729. / 51 Read more »