Applied Finance argues that despite their prices, growth companies may very well be undervalued in terms of their intrinsic value.
Value Investors Don’t Need to Avoid Growth Companies. In Fact, Doing So Can Hurt Returns.
Looking Back, Looking Forward – 2022Q3
Those latest earnings forecast, are implying an economic soft-landing, not an outright severe recession. Historically, the SP500 EPS change during a recession was a decline in the high teens. That said, with the SP500 losing nearly a quarter of its value YTD, investors clearly have embraced less robust prospective earnings than what the consensus estimate is suggesting. […more]