Style Index Performance During Periods of Decelerating and Accelerating S&P 500 Earnings Growth – Russell 1000 Value vs. Growth Is it time for investors to favor value stocks, as Value tends to beat Growth when profits accelerate? Image: BofA US Equity & Quant Strategy
China Stocks – New Economy Relative to Old Economy China’s new economy stocks featured higher profitability and revenue growth. Image: Morgan Stanley Research
Banks and U.S. Real Yields Banks suffer from low real yields, as it is more difficult for them to make a profit from lending. Image: Bloomberg
Top 5 vs. S&P 500 ex-Top 5 – YoY Contribution of EPS and P/E to Returns The performance gap could widen further, as the top 5 largest stocks in the S&P 500 are superior on almost every financial metric (revenue, profit growth, margin structure, volatility and corporate leverage). Image: Credit Suisse Research
Share of IPOs with Positive Net Income in Year 1 The IPO class of 2019 is the least profitable of any year since the internet bubble. Image: Goldman Sachs Global Investment Research
Emerging Markets Exports Value and MSCI Emerging Markets 12m Trailing EPS Chart suggesting that EM corporate profits are linked to the global trade cycle. Image: Gavekal, Macrobond
Number of U.S. IPOs and U.S. IPOs with Negative Earnings This chart shows the fall in new listings and the proportion of unprofitable U.S. IPOs at the highest level since the tech bubble. Image: J.P. Morgan Asset Management
S&P 500 Industrials Index and U.S. Manufacturing Unit Labor Costs When U.S. labor costs rise, industrial profit margins are under pressure. Image: Quill Intelligence, LLC
Global Manufacturing PMI and Multi-Asset Portfolio Returns This chart suggests that markets have not taken into account this year’s growth and profits slump. Image: J.P. Morgan Asset Management
IPO Relative Performance in 2019 The IPO market is suffering in 2019. This year’s IPO class is one of the least profitable. Image: Goldman Sachs Global Investment Research
S&P 500 LTM Return On Equity (ROE) The S&P 500 LTM Return On Equity (ROE) gives a picture of corporate profitability and remains high relative to history. Image: Goldman Sachs Global Investment Research