Posted by sbaxman111 on 24th of Nov 2017 at 03:52 pm
An especially interesting observations goes to the leadership of
the 24% rally since Trump's election, which - while hardly a
surprise - was largely driven by a handfull of companies, or ten to
be precise.
As SocGen calculates,
just 10 contributors of the S&P 500’s bull run have accounted
for 33% of the S&P 500 performance. The bank also
points out that
all of the companies listed below have seen their P/Es expand over
the last 12 months, in some cases - like Nvidia, WalMart,
Boeing and Amazon - dramatically. In fact, only three
companies (Apple and the two banks) have 12-month P/Es that are
below the market average (18x). Lastly, keep in mind that except
Amazon, all of the companies already pay a corporate tax rate
below the current US federal tax rate (35%), and five companies
even pay a tax rate that is below the 20% rate targeted by Trump’s
tax reform.
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Ten Companies driving the S&P Election Rally
Posted by sbaxman111 on 24th of Nov 2017 at 03:52 pm
An especially interesting observations goes to the leadership of the 24% rally since Trump's election, which - while hardly a surprise - was largely driven by a handfull of companies, or ten to be precise.
As SocGen calculates, just 10 contributors of the S&P 500’s bull run have accounted for 33% of the S&P 500 performance. The bank also points out that all of the companies listed below have seen their P/Es expand over the last 12 months, in some cases - like Nvidia, WalMart, Boeing and Amazon - dramatically. In fact, only three companies (Apple and the two banks) have 12-month P/Es that are below the market average (18x). Lastly, keep in mind that except Amazon, all of the companies already pay a corporate tax rate below the current US federal tax rate (35%), and five companies even pay a tax rate that is below the 20% rate targeted by Trump’s tax reform.