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Title: U.S. Stocks Cheapest Since 1990 on Analyst Estimates
Source:
BBG
URL Source: http://www.bloombrg,.com
Published: Apr 26, 2010
Author: Lynn Thomasson, Whitney Kisling and Rita
Post Date: 2010-04-26 15:05:37 by war
Keywords: None
Views: 1863
Comments: 73
April 26 (Bloomberg) -- Even after the biggest rally since the 1930s, U.S. stocks remain the cheapest in two decades as the economy improves. Profit estimates for Standard & Poor’s 500 Index companies from Apple Inc. to Intel Corp. and CSX Corp. climbed 9.1 percent on average in April through the end of last week, twice the gain in their prices and the largest monthly increase since at least 2006, data compiled by Bloomberg show. The benchmark gauge for American equities is trading at 14.2 times forecasts for its companies’ earnings, lower than any time since 1990, except for the months after Lehman Brothers Holdings Inc. collapsed. Income is beating analysts’ estimates by 22 percent in the first quarter, making investors even more bullish that the rally will continue after the index climbed 80 percent since March 2009. While bears say the economy’s recovery is too weak for earnings to keep up the momentum, Fisher Investments and BlackRock Inc. are snapping up companies whose results are most tied to economic expansion. “The stock market is incredibly inexpensive,” said Kevin Rendino, who manages $11 billion in Plainsboro, New Jersey, for BlackRock, the world’s largest asset manager. “I don’t know how the bears can argue against how well corporations are doing.” S&P 500 companies may earn $85.96 a share in the next year, according to data from equity analysts compiled by Bloomberg. That compares with the index’s record combined profits of $89.93 a share from the prior 12 months in September 2007, when the S&P 500 was 19 percent higher than today. Record Pace The earnings upgrades come as income beats Wall Street estimates at the fastest rate ever for the third time in four quarters. More than 80 percent of the 173 companies in the S&P 500 that reported results have topped estimates, compared with 79.5 percent in the third quarter and 72.3 percent in the three- month period before that, Bloomberg data show. The S&P 500 rose less than 0.1 percent to 1,217.53 at 10:05 a.m. in New York. The gauge increased 2.1 percent last week as new-home sales surged the most since 1963, recovering from the April 16 rout when the Securities and Exchange Commission said it was suing New York-based Goldman Sachs Group Inc. for fraud. The index is up 9.2 percent for 2010, the largest gain in the world’s 15 biggest equity markets, Bloomberg data show. While analysts are raising estimates, they’re not boosting investment ratings. Companies ranked “buy” make up 30 percent of all U.S. equities, the data show. That compares with 45 percent in September 2007, a month before the S&P 500 reached its record high of 1,565.15 and began a 17-month plunge that erased $11 trillion from the value U.S. shares. Easier to Adjust “It’s been easier for analysts to adjust their earnings estimates than to aggressively put forth strong ‘buy’ recommendations,” said Keith Wirtz, who oversees $18 billion as chief investment officer at Fifth Third Asset Management Inc. in Cincinnati. “It may be a reflection of concern about the resilience of earnings in 2011 and beyond.” Companies are losing the benefit of a weaker dollar after the currency appreciated 9.5 percent since November against a basket of six trading partners, according to the Dollar Index from Atlanta-based IntercontinentalExchange Inc. A rising currency cuts demand for American exports and reduces overseas revenue when converted back to dollars. Abercrombie & Fitch Co., the New Albany, Ohio-based teen retailer, warned the rally may weaken its profitability, according to a March 10 conference call. Westport, Connecticut- based Terex Corp., the world’s third-biggest maker of construction equipment, said in an April 21 earnings release that currency swings may reduce revenue. Terex got 75 percent of 2009 sales outside the U.S., Bloomberg data show. Alternate Valuation David Rosenberg, chief economist of Gluskin Sheff & Associates Inc., says U.S. stocks are poised for losses because they’ve become too expensive. The S&P 500 is valued at 22.1 times annual earnings from the past 10 years, according to inflation-adjusted data since 1871 tracked by Yale University Professor Robert Shiller.
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#1. To: war (#0)
I don't think anybody could seriously call Apple a cheap stock. If anything happens to Jobs, the bottom will fall out, at least for a while.
We're not fighting in Iraq. You should watch a news program occasionally. - Libery Flame Military Expert "Maddog" Badeye
Apple is going to split by year end...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
That won't make it cheap. It's still too much of a cult stock for me.
We're not fighting in Iraq. You should watch a news program occasionally. - Libery Flame Military Expert "Maddog" Badeye
Your new tagline underscores your stupidity. I like it. Our troops haven't had a firefight in MONTHS you idiot. We're not fighting in Iraq, we're sitting in bases, watching the sand grow.
I can see NOVEMBER from my House....
So if we don't have firefights the other types of fighting don't count? I guess our troops really are dying in vain.
It's the war, stupid.
Oh, is it firefight that now defines whether we're still there fighting? I guess a US airstrike doesn't count. Idiot, back at ya.
We're not fighting in Iraq. You should watch a news program occasionally. - Libery Flame Military Expert "Maddog" Badeye
He's still wrong. US troops have been fighting in Diyala since January and they are about to launch another offensive there. Some of us actually READ news rather than "watch" it.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
It's PE is 22 which is the histortical average of the S&P. I own and if it splits this year, which I do believe it will, I am buying more.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Where did we do an airstrike in IRAQ, dickhead? (laughing) 1st Rule of Holes, kook.
I can see NOVEMBER from my House....
(laughing) Your stupidity is only exceeded by your arrogance. By Ernesto Londoño Washington Post Foreign Service Monday, April 26, 2010 BAGHDAD -- The Sunni insurgent group al-Qaeda in Iraq acknowledged in a statement released over the weekend that its two leaders were recently slain in a U.S. airstrike in northern Iraq, confirming reports by Iraqi and U.S. officials. The statement said Abu Ayyub al-Masri, the Egyptian-born leader of the group, and Abu Omar al-Baghdadi, his Iraqi counterpart, were holding a meeting when a team of Iraqi and U.S. Special Forces soldiers descended on their safe house on the outskirts of Tikrit in the early hours of April 18. The airstrike was ordered when the approaching troops came under fire. http://www.washingtonpost.com/wp-dyn/content/article/2010/04/25/AR2010042500216.html?hpid=sec-world
Tamer than our 2000 election cycle. - Political Expert Badeye on Iraq election that has left over 50 dead so far
Arrogance, dickhead? Hardly.
I can see NOVEMBER from my House....
The US may be providing air and perhaps other support, But it is the Iraqi security forces which are conducting the offensive.
So you trust the Obama administration and the MSM to now give you the straight scoop. Well alrighty then!
It's the war, stupid.
Of course it is. We're not fighting in Iraq, as these knuckleheads and Owe-bama want to pretend. We're not 'fighting two wars'.
I can see NOVEMBER from my House....
How many died HERE in 2000 as a result of the election cycle, dickhead? (laughing)
I can see NOVEMBER from my House....
You have to feel sorry for Badeye today. He was given some tough talking points/spins to sell.
It's the war, stupid.
Is that the only effect of a stock splitting that the price per share drops? Is that the only effect?
I spend more time on FB than anywhere else on the web these days .... badeye
Nobody, pinhead. That was the point. 50 people die in Iraq, nobody dies here over the 2000 election, and moron you says their election was "Tamer than our 2000 election cycle". God, can you really be this dumb?
Tamer than our 2000 election cycle. - Political Expert Badeye on Iraq election that has left over 50 dead so far
That was MY POINT, dickhead. Reread the thread. 'TAMER HERE IN 2000' Sheesh.
I can see NOVEMBER from my House....
No. It obviously dilutes shares outstanding.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Now you're lying again. Your post said "Tamer than our 2000 election cycle". Here it is, in it's full stupidity, in case you've forgotten: "#1. To: Brian S (#0) Tamer than our 2000 election cycle. I can see NOVEMBER from my House.... Badeye posted on 2010-04-26 12:56:49 ET Reply Trace Private Reply " http://libertysflame.com/cgi-bin/readart.cgi?ArtNum=8015&Disp=1#C1 Period. End of story. I don't think I've ever come across someone like you who has to lie about everything. Even your post above is a lie, since that isn't what you said. You're really a pathetic little man.
Tamer than our 2000 election cycle. - Political Expert Badeye on Iraq election that has left over 50 dead so far
Hey, we won in Iraq. The fighting is over. /badlies
I did Mistype. You are correct. My error.
I can see NOVEMBER from my House....
Ah, the Grammar King speaks! (laughing) You still aren't worth a lie, Freddie. Sorry your ego requires that you think otherwise.
I can see NOVEMBER from my House....
You aren't worth a lie either, skippy. Sorry YOUR ego requires you to think otherwise. Yep, make some mistakes, like the typo I just acknowledged. But 'lie'? Puleese. Not worth the effort.
I can see NOVEMBER from my House....
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Bullshit...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
I wonder when the victory parades start here?
It's the war, stupid.
Dunno but I will be cheering when they come home.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
'Tamer', 'war' and 'won'. All words with weird definitions in Badlie's through the looking glass world. But sociopaths, no.... I think it's progressed to being a psychopath in this case, love to lie even when the truth is easier.
It's the war, stupid.
Me too, but I guess the gov didn't get the official word from Badlie yet. lol
It's the war, stupid.
He's a pathological liar and it's probably congenital. And that is the plain and simple truth.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
And that is the plain and simple truth. I remember going into a restaurant in the late eighties and there was a guy no more than twenty five loudly telling a couple of Marines that he had flown a helicopter gunship in Vietnam. And you could tell he was so convincing that they believed him. That might have been Badlie... flying gunships in Vietnam at the age of eleven. lol
It's the war, stupid.
Before spending those deep dark nights in the coal mines of the Indian Ocean. He made a flippant remark. That's all he had to say...
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
Maybe he looked young for his age.
God, how I hate those that pretend to be Vietnam Vets. almost as bad as the one's that pretend they were 'SEALS'. Almost.
I can see NOVEMBER from my House....
lol
I spend more time on FB than anywhere else on the web these days .... badeye
Don't see the humor, but whatever.
I can see NOVEMBER from my House....
That's because the joke is you.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
LOL
Comments (41 - 73) not displayed.
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#2. To: Skip Intro (#1)
#3. To: war (#2)
Apple is going to split by year end...
#4. To: Skip Intro (#1)
#5. To: Badeye (#4)
Our troops haven't had a firefight in MONTHS you idiot.
#6. To: Badeye (#4)
Our troops haven't had a firefight in MONTHS you idiot.
#7. To: Skip Intro (#6)
(Edited)
Oh, is it firefight that now defines whether we're still there fighting? I guess a US airstrike doesn't count.
#8. To: Skip Intro (#3)
That won't make it cheap. It's still too much of a cult stock for me.
#9. To: Skip Intro (#6)
#10. To: Badeye (#9)
Where did we do an airstrike in IRAQ, dickhead?
#11. To: Skip Intro (#10)
#12. To: war (#7)
#13. To: no gnu taxes (#12)
The US may be providing air and perhaps other support, But it is the Iraqi security forces which are conducting the offensive.
#14. To: no gnu taxes (#12)
The US may be providing air and perhaps other support, But it is the Iraqi security forces which are conducting the offensive.
#15. To: Skip Intro (#10)
Tamer than our 2000 election cycle. - Political Expert Badeye on Iraq election that has left over 50 dead so far
#16. To: Skip Intro (#10)
#17. To: war (#8)
#18. To: Badeye (#15)
How many died HERE in 2000 as a result of the election cycle, dickhead?
#19. To: Skip Intro (#18)
Nobody, pinhead. That was the point.
#20. To: Abu el Banat (#17)
Is that the only effect of a stock splitting that the price per share drops? Is that the only effect?
#21. To: Badeye (#19)
Reread the thread. 'TAMER HERE IN 2000'
#22. To: Skip Intro (#21)
I don't think I've ever come across someone like you who has to lie about everything.
#23. To: Skip Intro (#21)
#24. To: Fred Mertz (#22)
#25. To: Skip Intro (#21)
#26. To: Skip Intro (#21)
#27. To: Badeye (#23)
#28. To: Fred Mertz (#22)
Hey, we won in Iraq. The fighting is over.
#29. To: mininggold (#28)
#30. To: Skip Intro (#21)
don't think I've ever come across someone like you who has to lie about everything. Even your post above is a lie, since that isn't what you said.
#31. To: war (#29)
Dunno but I will be cheering when they come home.
#32. To: mininggold (#30)
#33. To: war (#32)
He's a pathological liar and it's probably congenital.
#34. To: mininggold (#33)
That might have been Badlie... flying gunships in Vietnam at the age of eleven. lol
#35. To: mininggold (#33)
and there was a guy no more than twenty five loudly telling a couple of Marines that he had flown a helicopter gunship in Vietnam
#36. To: no gnu taxes (#35)
#37. To: Badeye (#36)
#38. To: Abu el Banat (#37)
#39. To: Boofer, Abu el Banat (#38)
#40. To: Badeye (#36)
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