web analytics

Book/Price – A Broken Factor

September 14, 2020

In the past 5-10 years, investors have seen drastic underperformance from traditional value factors. Russell style indices, which use sales growth, earnings growth, and book/price to determine value and growth, have seen a strong divergence in performance since the 2008 recession. Let’s examine Russell Value/Growth Anomalies, Share Repurchases and Intellectual Assets.
[…more]

Another Look at Apple

September 11, 2020

The reign of Tim Cook at apple has been extraordinary with the company’s valuation growing 5x larger on his watch. Deservedly, there has been little criticism of the cash returned through stock buybacks (~$340 Billion […more]

Understanding Recent Option Activity

September 10, 2020

Recent reports attribute the market’s recent melt-up to option buying activity from Japanese institutional giant SoftBank and unsophisticated American traders using the new commission free platform, Robinhood. Without divining on whether these explanations are clever, […more]

Market in Pictures – August 2020

September 2, 2020

For August 2020, we highlight the importance to productivity of waking up properly, the plight and pain of traditional value managers, a must-read white paper on value investing and technology and several other trending topics […more]

Market Realized Earnings & Forecasts

August 28, 2020

The S&P 500 recently crossed into new all time highs as the market shrugs off the coronavirus threat. Applied Finance’s database processes forecast data for over 20,000 companies worldwide. We decided to take a look […more]

Is the S&P 500 a Value, Core, or Growth strategy?

August 19, 2020

Is the S&P 500 a Value, Core, or Growth strategy? It depends.
The push in megacap stocks has caused index concentration to be at the highest levels since the 1970’s. Additionally, the Covid-19 pandemic and drop in interest rates has led investors to favor Growth stocks so far this year, exacerbating the trend. […more]

Growth Stocks Approaching Valuation Levels Last Observed During Tech Bubble

August 11, 2020

While we rarely make huge market calls and remain reluctant to do so at this point, its worth noting that growth stocks are trading at below -1.5 StdDev from historical normal levels signaling a significant move outside of normal range. This is especially noteworthy, as the growth relationship in the Russell 1000 is now at levels last observed in the peak of the tech bubble. […more]

Shareholder Yield in the Era of Low Interest Rates

August 4, 2020

Investors too often focus solely on dividends, when they should consider a combination of dividends and share repurchases. In a decade-long spell of low interest rates, public companies have strong incentives to reconsider their capital […more]

1 5 6 7 8 9 10

ValuationEdge™ Newsletter

Join to receive updates and exclusive

Valuation Driven® insights!

You have Successfully Subscribed!