Bloomberg News’ Post

Price/earnings to growth ratio (PEG ratio) is a stock's price-to-earnings (P/E) ratio divided by the growth rate of its earnings PEG ratio is considered to be an indicator of a stock's true value, and similar to the P/E ratio, a lower PEG may indicate that a stock is undervalued A negative PEG can arise from a negative P/E ratio or else negative earnings growth estimates It provides useful information to compare companies and see which stock might be the better choice for an investor's needs In PEG ratio growth rate projections, investors can refer to such a company’s own announced projections. They can also make use of estimates published by analysts at their websites. Formula : PEG Ratio=EPS GrowthPrice/EPS #Finance #Valuation #Linkedin

The S&P 500 top 10 company weights have hit another ALL-TIME RECORD of 35%.😳 In just 2 years the share of the top 10 corporates in the index spiked by almost 10 percentage points. Are stock valuations also so extreme? Is the US 🇺🇸 stock market in a bubble?🤔 #stockmarket #stockinvesting

An interesting 5 minute read as to why corporate buy backs of stock could be an additional boost for the Market through 2024. What do you think it means for investors that companies are buying their stock back and taking it off the Market?

One of our biggest winners of this year - $ACN. As I expected the stock respected the trendline, then moved above the 200 SMA $330 and finally reached our target of $354. The stock even extended the bounce and hit a fresh 8-month high of $376. Looking forward to more profitable trades. https://lnkd.in/dePFsdea https://lnkd.in/dJ6Jf4pC #stocktrading #stocks #stockanalysis #investingtips #wallstreet

The Price-to-Earnings (P/E) ratio is one of the most commonly used metrics to evaluate the value of a company. It compares a company’s stock price to its earnings per share (EPS). What Does It Mean? - A high P/E ratio often indicates that investors expect strong future growth, and they are willing to pay more for each dollar of current earnings. - A low P/E ratio might mean the stock is undervalued or that the company is experiencing challenges. Why It’s Important: Understanding the P/E ratio helps investors decide whether a stock is overvalued, fairly valued, or undervalued. This can assist in making more informed investment decisions! Keep in mind: P/E ratios vary by industry and should always be used in context with other financial indicators. #InvestingBasics #StockMarket101 #FinanceExplained #PERatio #SmartInvesting

Short rant. "Hold" is a nonsense rating for equities. If you believe a stock will outperform the market on a risk adjusted basis, then it should be a "Buy". If you don't, then it should be a "Sell". Why should anyone continue to own a stock that isn't expected to outperform? If it's not a buy, then those $$ should be allocated to an index or an alternate asset class.

Wall Street Journal columnists threw 12 darts at stock-market listings a year ago. The biggest takeaway from all of it was that, while there were a few other winners, a single stock was responsible for ALL of their net gains. That hews to reality. A long-term study of U.S. stock returns by Hendrik Bessembinder shows that half of all excess returns came from just 83 companies. Most stocks underperform risk-free investments, which is why diversified portfolios not designed to shoot the lights out are more prudent. https://lnkd.in/g8hDpem3

𝐒𝐢𝐧𝐜𝐞 𝟏𝟗𝟐𝟔, 𝐭𝐡𝐞 𝐔.𝐒. 𝐬𝐭𝐨𝐜𝐤 𝐦𝐚𝐫𝐤𝐞𝐭 𝐡𝐚𝐬 𝐩𝐫𝐨𝐯𝐢𝐝𝐞𝐝 𝐚𝐧 𝐚𝐧𝐧𝐮𝐚𝐥𝐢𝐳𝐞𝐝 𝐫𝐞𝐭𝐮𝐫𝐧 𝐨𝐟 ≈𝟏𝟎%. Yearly returns have ranged as high as up 54% (1933) and as low as down 43% (1931). Over the last 98 years, annual returns have been positive 73% of the time. But historical stock market data shows returns in a given year are typically nowhere near this 10% long-term average. As of yesterday, the S&P 500 is up ≈16% YTD. Will we see a “normal” return year in 2024? #investing #SP500 #stockmarket Disclaimer: This post is for informational purposes only. It is not construed as a solicitation or offer, or recommendation to acquire or dispose of any investment or to engage in any other transaction or to provide any investment advice or service.

Wall Street Journal columnists threw 12 darts at stock-market listings a year ago. The biggest takeaway from all of it was that, while there were a few other winners, a single stock was responsible for ALL of their net gains. That hews to reality. A long-term study of U.S. stock returns by Hendrik Bessembinder shows that half of all excess returns came from just 83 companies. Most stocks underperform risk-free investments, which is why diversified portfolios not designed to shoot the lights out are more prudent. https://lnkd.in/gB9ejsHj

Wall Street Journal columnists threw 12 darts at stock-market listings a year ago. The biggest takeaway from all of it was that, while there were a few other winners, a single stock was responsible for ALL of their net gains. That hews to reality. A long-term study of U.S. stock returns by Hendrik Bessembinder shows that half of all excess returns came from just 83 companies. Most stocks underperform risk-free investments, which is why diversified portfolios not designed to shoot the lights out are more prudent. https://lnkd.in/gZ6UV2yz