Nomura Securities Retail Weekend Reading: Do Current Stock Prices Make Sense?
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Price: $40.64 -1.74%
Rating Summary:
15 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
15 Buy, 12 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade GPS Now!
Nomura Securities Retail Weekend Reading: Do current stock prices make sense?
Analysts, Aram Rubinson and Paul Lejuez, said, "While short-term movements in prices are tempting to capture, they cannot be viewed as efficient all the time. We were interested in measuring YTD stock performance against expected earnings growth. We can see that Hardlines has been a remarkably rational group YTD. All of the Hardlines companies in our analysis have seen their share price move in the same direction as earnings. In Softlines, out of the 15 stocks surveyed, 12 of them moved in the same direction as their EPS are moving. In general, stocks with strong fundamentals are growing faster than earnings would imply (Gap (NYSE: GPS), Michael Kors (Nasdaq: KORS), Sherwin-Williams (NYSE: SHW), Amazon (Nasdaq: AMZN)). Stocks with weaker fundamentals are declining at a pace faster than their earnings would imply (JCPenney (NYSE: JCP), Abercrombie (NYSE: ANF), Staples (Nasdaq: SPLS)).
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Analysts, Aram Rubinson and Paul Lejuez, said, "While short-term movements in prices are tempting to capture, they cannot be viewed as efficient all the time. We were interested in measuring YTD stock performance against expected earnings growth. We can see that Hardlines has been a remarkably rational group YTD. All of the Hardlines companies in our analysis have seen their share price move in the same direction as earnings. In Softlines, out of the 15 stocks surveyed, 12 of them moved in the same direction as their EPS are moving. In general, stocks with strong fundamentals are growing faster than earnings would imply (Gap (NYSE: GPS), Michael Kors (Nasdaq: KORS), Sherwin-Williams (NYSE: SHW), Amazon (Nasdaq: AMZN)). Stocks with weaker fundamentals are declining at a pace faster than their earnings would imply (JCPenney (NYSE: JCP), Abercrombie (NYSE: ANF), Staples (Nasdaq: SPLS)).
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