Amazon.com’s earnings surprise is the story of the day, pushing even the jobs report into second billing. More on that in a second.
But what’s the best way to pick value stocks? Using price-to-earnings hasn’t worked over the last 20 years in the U.S., and particularly not in the last decade. And since 2000, buying the highest-yielding stocks each month has generated virtually no outperformance over the lowest yielding stocks, says Klement.
The buzz Amazon.com AMZN, -7.81% is set to bounce higher by some 12%, after crushing earnings estimates and announcing it will increase the subscription cost of its Prime service. Social-media companies Snap SNAP, -23.60% and Pinterest PINS, -10.32% are set to rally after results dispelled worries over their outlook following the downbeat forecast of Facebook parent Meta Platforms FB, -26.39%. Ford Motor Co. F, -3.59%, however, lagged behind earnings expectations.
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