Price/Earnings Ratio Archives - C.J. Lawrence // Investment Management

March 4, 2019
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly – Low Interest Rates Add Fuel to the Stock Market Recovery

For stock investors, low rates are a welcome market backdrop, and have helped stocks recover from their December lows. Of course, favorable headlines regarding a pending trade deal between the U.S. and China have helped boost market sentiment, but the fundamental underpinning of low interest rates ...

February 11, 2019
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly – Bond Market and Stock Analysts in Sync on Slower Growth

The bond market and stock analysts are anticipating slow growth in the year ahead. But the market is starting to give signals that earnings growth expectations are bottoming. Companies with limited overseas sales exposure are expected to grow much faster than those with considerable foreign sales ...

December 10, 2018
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly – Overweight Communications Services Sector for Both Offense and Defense

Meanwhile, one sector that has been beaten down over the last year despite a good mix of both defensive and offensive characteristics is the recently created Communications Services Sector. It was formed this fall by S&P Global as part of their GICS (global industry classification system) sector re...

August 6, 2018
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly Market Comment – Growth Remains Attractive…Comparisons to the “Nifty Fifty” and Internet Bubble Periods Miss the Mark

Some growth doubters have likened today’s environment to that of the “Nifty Fifty” period in the 1970s, or to the new economy stock mania in the late 1990s prior to the bursting of the internet bubble. But deeper analysis suggests that those comparisons don’t stand up. The original “Nift...

June 25, 2018
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly – Down but Not Out…Industrial Stocks Warrant a Closer Look

A closer look at sector fundamentals, and the progression of sales and earnings forecasts, suggests that industrial stocks may have been prematurely discounted. Industrial stock prices may already reflect much risk and may not be discounting the possibility that we are in the midst of a capital spen...

February 12, 2018
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly – Volatility Returns (Chairman, James Moltz)

The abrupt rise in stock market volatility is being driven by a growing concern that recently enacted fiscal stimulus will overheat the economy bringing with it inflation, higher interest rates and federal funding issues. The 10% correction in the major U.S. indices is testimony to the market’s pe...

February 5, 2018
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly – The Tug‐of‐War Between Lower Valuations and Faster Earnings Growth Still Skews Towards Growth

The race between earnings growth rates and the rate of decline in the market’s P/E multiple is on. Along the way, the 10-30 year treasury bond spread may provide insights into the appropriate market multiple to apply. The challenge for equity investors will be to find stocks with earnings growth r...

December 18, 2017
Blog , The Portfolio Strategist - Terry Gardner

C.J. Lawrence Weekly – Time to Rotate to Value Stocks?…Not So Fast

Over the last 15 years, growth stocks have traded at a 1.21 relative P/E to value, having peaked at 1.44 and troughed at .91. That ratio now stands at 1.28 and has been declining since 2013. The same holds true for price/book value, return on equity, and price/earnings growth (PEG) relative comparis...

Price/Earnings Ratio

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