Source: Zhitong Finance and Economics
Author: Li Junyi
The sell-off in the US stock market has reduced its price-to-earnings ratio to slightly higher than its average for more than 50 years. Jonathan Golub, US equity strategist at Credit Suisse, said on Wednesday: "at the beginning of the year, the top 100 stocks in the S & P 500 traded 25.8 times higher than the rest of the market. After the market correction, these stocks are now trading just 15.1 times higher, in line with their long-term average. "
Golub representsThe price-to-earnings ratio of TECH+, a portfolio owned by Credit Suisse, has fallen to 3.9 times earnings from 7.7 times in January, closer to the long-term trend.It is understood that TECH+ is an equal weight.Russell 1000 Index ETF-iShares (IWB.US) $Basket, includingHigh-tech index ETF-SPDR (XLK.US) $Traditional technology companies in China, including$Alphabet Inc-CL C-C (GOOG.US) $、$Meta Platforms (META.US) $、$Netflix Inc (NFLX.US) $和$Amazon.Com Inc (AMZN.US) $, excluding$Tesla, Inc. (TSLA.US) $。
Internet retail and media were the most heavily reassessed, according to Golub.The valuation of cyclical stocks in all portfolios is the most favorable.$SPDR raw materials ETF (XLB.US) $和$SPDR Energy Index ETF (XLE.US) $Trading is being done at the largest discount compared to history.In addition$SPDR Financial Industry ETF (XLF.US) $The price-to-earnings ratio has rebounded from negative 6.6 times at the beginning of the year to minus 4.2 times today, relative to history.Bank Index ETF-SPDR KBW (KBE.US) $It seems to be the cheapest.
Finally, Golub said that the overall valuation of non-cyclical stocks is reasonable.Selected Public Utilities Industry Index ETF-SPDR (XLU.US) $和Selected daily consumer goods industry index ETF-SPDR (XLP.US) $Expensive (a premium of 2.9 times earnings and 3.7 times earnings, respectively)$SPDR Standard & Poor's Telecom ETF Fund (XTL.US) $The price is cheap (a discount of minus 4.1 times earnings).
In addition, small-cap stocks that are still in the high-price area$iShares Russell 2000 Index ETF (IWM.US) $And growth stocksRussell 1000 growth Index ETF-iShares (IWF.US) $The current trading price is 7.8 times higher than value, compared with a premium of 4.8 times over the past 20 years. "
It is worth mentioning that, as shown in the chart below, Bank of America Corporation has set up three indicators to buy the S & P 500.
Edit / Jeffrey