Friday, September 22, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Stocks

Stock Portfolio ’Window-Dressing’ At Work As Investment Managers Sell Unattractive Losers And Buy Trendy Winners

MtR by MtR
June 27, 2021
in Stocks
0
Stock Portfolio ’Window-Dressing’ At Work As Investment Managers Sell Unattractive Losers And Buy Trendy Winners


An investment manager-adviser selecting stocks to buy and sell


getty

When the quarterly reports go out, stock managers and advisers want their investors to get positive vibes when examining their portfolio holdings. Thus, toward each quarter’s end, there can be some “window-dressing” selling and buying designed to spruce up the holdings list.

Obviously, selling to weed out any big disappointments is important – particularly if there was negative news tied to the poor performance.

Related articles

Stocks wilt, yields firm on re-pricing ‘high-for-long’ Fed rates

Stocks wilt, yields firm on re-pricing ‘high-for-long’ Fed rates

September 22, 2023
Sensex Today | Stock Market Live Updates: Sensex erases opening gains, trade flat; Nifty nears 19,750; IOB jumps 4%, Glenmark Pharma drops 3%

Sensex Today | Stock Market Live Updates: Sensex erases opening gains, trade flat; Nifty nears 19,750; IOB jumps 4%, Glenmark Pharma drops 3%

September 22, 2023

So, how about on the positive side? Investors like seeing the leaders. This quarter there are many good-looking choices. They can be found by screening the databases.

Identifying desirable stocks

For example, here is an S&P 500 search for stocks that meet the following criteria (Data source: Financial Visualizations – FinViz.com).

  1. An index-beating 3-month return of 10% or more (This period covers most of the current quarter)
  2. An index-beating year-to-date return of 15% or more (To ensure the 3-month return wasn’t simply a fluke or rebound)
  3. A current price level of only 0% to 10% below the stock’s 52-week high (A measure of current price position and trend desirability)
  4. An average analyst recommendation of “Buy” or better (A measure of fundamental valuation soundness at stock’s current price) [The FinViz.com data refer to this rating scheme: 1=strong buy, 2=buy, 3=hold, 4=sell and 5=strong sell — “Buy or better” range is 1 to 2.5]

One thing to note: There are many well-known companies that do not meet those criteria. That doesn’t mean necessarily that they are sell candidates. Instead, they simply didn’t classify as “trendy winners” using this particular screening.

To illustrate the selection sensitivity, only 3 (10%) of the 30 DJIA stocks met all four criteria: American Express, Goldman Sachs and Microsoft. Among the five FAANG stocks, only Alphabet/Google and Facebook made it, leaving behind Apple, Amazon and Netflix. Even popular Tesla failed to make the cut, and doing so overwhelmingly by meeting none of the criteria.

Before examining the stocks that met all the criteria, let’s see where Apple, Amazon, Netflix and Tesla failed to make the cut (the circled data):

Where Apple, Amazon, Netflix and Tesla failed to pass criteria


John Tobey

Now let’s turn to the S&P 500 stocks that met all four criteria

The 94 S&P 500 companies that met all four criteria are listed below. They are grouped by sector and then sorted by industry. Besides the criteria above, the data include the two popular valuation measures of forward price/earnings ratio (based on the next fiscal year’s earnings estimate) and dividend yield.

Table #1 – Basic Materials and Communication Services


John Tobey

Table #2 – Consumer Cyclical


John Tobey

Table #3 – Consumer Defensive and Energy


John Tobey

Table #4 – Financial


John Tobey

Table #4 – Healthcare


John Tobey

Table #6 – Industrials


John Tobey

Table #7 – Real Estate


John Tobey

Table #8 – Technology and Utilities


John Tobey

The bottom line: Stock selection investing is in full swing

It’s important to watch individual stocks in this market. Covid hit many businesses simultaneously, causing correlated moves within the stock market. Now, however, the return to mostly normal business operations means companies are back to pursuing individual and competitive strategies. That means stock selection offers the potential for soundly beating the market.

Therefore, now is a good time to invest in individual company stocks and/or select an adviser or fund to do the work. The payoff could be significant.



Source link

Related Posts

Stocks wilt, yields firm on re-pricing ‘high-for-long’ Fed rates

Stocks wilt, yields firm on re-pricing ‘high-for-long’ Fed rates

by MtR
September 22, 2023
0

Bank of Japan rates on hold; yen slumps10-year Treasury yields breach 4.5%Germany shows signs of deep contractionEuro zone likely to...

Sensex Today | Stock Market Live Updates: Sensex erases opening gains, trade flat; Nifty nears 19,750; IOB jumps 4%, Glenmark Pharma drops 3%

Sensex Today | Stock Market Live Updates: Sensex erases opening gains, trade flat; Nifty nears 19,750; IOB jumps 4%, Glenmark Pharma drops 3%

by MtR
September 22, 2023
0

09:35:35 AM IST, 22 September 2023Sensex Today | Stock Market Live Updates: Glenmark Pharma opened nearly 5% lower after the...

Morgan Stanley’s Trading Desk Sees ‘Fragility Rising’ in Stocks

Morgan Stanley’s Trading Desk Sees ‘Fragility Rising’ in Stocks

by MtR
September 21, 2023
0

With the biggest US stock drop since March, two forces behind this year’s market resilience are on the cusp of...

Dividend-Paying Stocks Aren’t as Attractive as They Used to Be

Dividend-Paying Stocks Aren’t as Attractive as They Used to Be

by MtR
September 21, 2023
0

Steady income from stocks is no match for bonds these daysThe S&P 500 dividend yield is 2.852 percentage points below...

Stocks retreat as Wall Street braces for ‘higher for longer’ rates: Stock market news today

Stocks retreat as Wall Street braces for ‘higher for longer’ rates: Stock market news today

by MtR
September 21, 2023
0

US stocks were poised to continue their retreat on Thursday as Wall Street debated the hawkish message sent out by...

Load More
  • Trending
  • Comments
  • Latest
Bank of England tells ministers to intervene on digital currency ‘programming’

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021
Tips for checking smoke alarms during daylight saving time

Tips for checking smoke alarms during daylight saving time

March 12, 2022
GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
What will Durham County education bonds pay for? A full list

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0
Indiabulls Real Estate closed today at ₹78.59, up 1.68% from yesterday’s ₹77.29

Indiabulls Real Estate closed today at ₹78.59, up 1.68% from yesterday’s ₹77.29

September 22, 2023
3 ICOs Targeting 100x Gains

3 ICOs Targeting 100x Gains

September 22, 2023
4 Things to Know Now

4 Things to Know Now

September 22, 2023
CoinShares Launches Hedge Fund Division in U.S.

CoinShares Launches Hedge Fund Division in U.S.

September 22, 2023

Recent News

Indiabulls Real Estate closed today at ₹78.59, up 1.68% from yesterday’s ₹77.29

Indiabulls Real Estate closed today at ₹78.59, up 1.68% from yesterday’s ₹77.29

September 22, 2023
3 ICOs Targeting 100x Gains

3 ICOs Targeting 100x Gains

September 22, 2023
4 Things to Know Now

4 Things to Know Now

September 22, 2023

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter