US stock One week rose rapidly and rose 1.7 %. Communication service Supported by surprising things, I led the road Strong result From Netflix NFLX, which rose 14 % a week, the meta platform is 5.9 % exceeding the results of Wednesday. Despite this strong rise, the meta is near the fair value of Morning Star’s fair value, and the entire communication service sector is slightly priced. discount。 You can know what Morning Star’s Meta Analyst Maliku Amedcan is expecting from these results here。
For now, healthcare stocks are still underrated
health care The recent results of Johnson & Johnson JNJ and United Health Unh showed the second best performance sector because the investors were too pessimistic in this sector. Healthcare companies have begun a strong year, half the discounts on the fair value seen at the end of 2024, but this sector will continue to fall below the fair value and provide opportunities to those who want to choose investment.
EXXON Mobil’s revenue will be generated
In contrast to the tendency in the last few weeks Energy The shares worked as a market resistance, lowering the results of Exon Mobile XOM on Friday to 3 %. Occupies over 26 % of the energy sector, with a deep discount on the estimation of Morning Star’s fair value, and these results are low expectations surrounding energy companies. You can track these and other results with exclusive Morning Star Company’s revenue page。
Why profits are cylindrical
Investors are especially welcome if the stock price seems to convert optimism into a solid historical financial result of the future. By doing so, they generally decrease and promote more optimism among investors in accordance with evaluation indicators such as price/revenue (P/E) ratio. However, it is important for companies that are usually closely related to a wider economic cycle to recognize that profits are circulatory, but there are so few other companies, but in the long term. Few people do not have a periodic immunity.
This lesson believes that investors ultimately have these assets immunity from cycle and have an unrealistic high evaluation and revenue estimate of such assets, so they are asset class or company. Every time you experience a long -term world of growth in the group, you will be painful. Even if there is no boom, the evaluation of a company can be increased by using the conventional ratio, as the average price is compared to the high -level revenue.
If the price declines, the price has fallen, but if you measure these ratios, the company may look more expensive. If the price is much higher and the price is high, it can promote the people who used these metric as the purchase signal and ignite the pattern of capital destruction.
Stock market model
To avoid this result, it is important to use a long -term evaluation method that explains circulation. Such a model conforms to the George Boxy saying, “All models are wrong, but some are useful.” In this case, such a model tends to indicate that the shares are expensive before being recognized by a wider market, and sacrifice short -term interests in the hope of avoiding long -term losses. It will lead to doing it. However, for most investors, this is more desirable than an alternative. To know how Morning Star values the company, check this out. article Susan Jiubinsky.
Interest rates are not expected this week
Wednesday will be particularly busy for this week’s market commentator. In addition to Meta, Microsoft MSFT and Tesla TSLA report results, revealing the latest congregations in the federal preparation system. There is an overwhelming consensus that interest rates can be held, but the accompanying comments are scrutinized for hints on future routes for interest rates. The current consensus between forecasts is about one or two interest rates a year. This serious challenge may cause volatility in the stock market and bond market. This week you can find all profits and economic news. calendar。
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