Help with Stock Stats

[marko]

Been doing my Year-End poking around with M*'s "Xray" function on my fund holdings.

I have no idea if the following are good or bad only that they're all much higher relative to the S&P.

I'd suppose that being closer to the S&P would be a good thing but over the past 15 years I've done quite will in the market so I'm not sure exactly what it means; am I over/under aggressive? All of my 8 funds are run-of-the-mill; nothing exotic.

Price/Prospective Earnings Me: 17.17 S&P= .89
Price/Book Ratio Me: 2.43 S&P= .73
ROA Me: 6.33 S&P= .72
Projected EPS Growth Me: 9.88 S&P= 1.06

Any insight appreciated.

 

[njhowie]

Price/Prospective Earnings Me: 17.17 S&P= .89
Price/Book Ratio Me: 2.43 S&P= .73

For these two, the S&P numbers do not make any sense. Your numbers are more in line and closer to what the true S&P numbers are.

I don't think there's anything particular wrong with what you have at this time. I would say you are in line with the real S&P numbers and moderately (not overly) aggressive.

 

[marko]

For these two, the S&P numbers do not make any sense. Your numbers are more in line and closer to what the true S&P numbers are.

I don't think there's anything particular wrong with what you have at this time. I would say you are in line with the real S&P numbers and moderately (not overly) aggressive.

Thanks! I'm just going by what M* says; I've found them to give odd numbers from time to time.

What would you expect to see for S&P numbers on those two that you think are incorrect? A quick search showed a recent S&P P/E of 24 (and a mean of 15), so if I were at 17 what does my portfolio being 7 points under that (or 2 points over the mean) imply?

 

[njhowie]

Thanks! I'm just going by what M* says; I've found them to give odd numbers from time to time.

What would you expect to see for S&P numbers on those two that you think are incorrect? A quick search showed a recent S&P P/E of 24 (and a mean of 15), so if I were at 17 what does my portfolio being 7 points under that (or 2 points over the mean) imply?

Current Price/Forward Earnings of S&P is 19 (for 2020 Q4).

You being under that means that your holdings are a better "value" on an earnings basis. That does not necessarily translate in to a higher share price or better comparative performance. Generally, what the market wants to see is "earnings growth", which is more important than the P/E.

2019 S&P earnings growth was 1.9% and for 2020 it is currently projected to be 10%. So, it again looks like you are in the same neighborhood as S&P. However, take earning projections with a big grain of salt. They typically start out high and are slowly reduced through the year. 2019 was initially projected to be 8% growth, and look how that's turned out.

 

[marko]

Current Price/Forward Earnings of S&P is 19 (for 2020 Q4).

You being under that means that your holdings are a better "value" on an earnings basis. That does not necessarily translate in to a higher share price or better comparative performance. Generally, what the market wants to see is "earnings growth", which is more important than the P/E.

2019 S&P earnings growth was 1.9% and for 2020 it is currently projected to be 10%. So, it again looks like you are in the same neighborhood as S&P. However, take earning projections with a big grain of salt. They typically start out high and are slowly reduced through the year. 2019 was initially projected to be 8% growth, and look how that's turned out.

Got it! Thanks!!