Show Us the Money
Although we were disappointed stock prices didn’t react to spectacular firstquarter earnings (+25%), we remain very interested in what corporations are doing with the extra cash and how this might eventually boost share prices. Share repurchases. First quarter...
Fear, Greed, and Valuations: An Update
Earnings reports for Q1 have been nothing short of spectacular (helped by the recent reduction in corporate income tax rates). Reported earnings growth to date is 23.2% with revenue growth of 8.4% (source: FactSet). Net profit margins are 11.1%, a postfinancial...
Can FANG and Tech Recovery Heal the Stock Market?
Earnings season starts in earnest next week. Can the expected surge in earnings stabilize the market and provide a base for the next rally phase? The big question is whether the good earnings forecasts are already discounted in share prices. We won’t know that until...
The Three Types of Corrections Investors Face
The corporate earnings growth rate (year/year) for Q4, 2017 was a spectacular 15.2%, the highest quarterly growth rate reported in over six years. It marked the third time in the past four quarters earnings growth was in double digits. Revenues grew an impressive 7.9%...