Within the 1st decile ranking there was a good bit of activity. Financial stocks represent the dominate position at 46%, 2 points higher than last month
Rankings are segmented into several major categories designed to assist the investor in focusing on a global, regional, country, sector or individual stock. This report will provide insight on the world, regional, country and sector information. For complete details on the World-Large Cap individual stock ranking, please reference the data on our site, www.investment-strategy.info. (MENU: Client Service > Rankings > World > World LCap-Composite) The Rankings: World Markets – LCap Report will be posted monthly. Mid-month postings may occur between monthly reports if there is a meaningful change in the overall ranking positions.
Rankings are derived using six fundamentally important factors that create a profile for each company. The profile is unique in that it can be used to rank a stock from any part of the world to any other stock. The six factors used to create the ranking are:
1. Sales growth
2. Earnings Per Share
3. Dividend growth
4. Price Earnings Ratio
5. Yield
6. Price Earnings Growth
Additional qualifying measures of data reliability are applied to the six factors. Sales growth, EPS and dividends reliability is measured over several time frames.
The U.S. and China retained their respective positions of #1 and #2, but the U.S. now has 19% of 1st decile stocks increasing by 3 points from last month. China retained 26% of the 1st decile positions periods and applied to create a qualified sales growth, EPS and dividend growth value. The PEG factor is measured on a median basis rather than an average, avoiding heavily skewed ranking distortions. The six qualified factors are then used to determine an overall ranking and reported as the World Large cap.
The complete list covers 1,500 stocks from around the world which includes 53 countries. The world composite and each country is also segmented into one of 10 sectors. Each country and sector is additionally segmented into ranking deciles. The U.S. is the largest with 33% of the total followed by China at 11%. These are the two largest economies in the world and it is no surprise that they would secure the first two slots. Since last month the U.S. moved down 1 percentage point from 34% to 33% and Switzerland advance 1 percentage point from 1% to 2%. Japan has retained the #3 slot and is now 2 percentage points behind China at 9%. The U.K. and France both have 4% with their European partner, Germany is next at 3%. Canada and Hong Kong are equal with Germany at 3%.
Many of the decile country rankings remained in the same order, but several new names entered the picture. India, Russia, South Africa, Taiwan, Brazil, Mexico, Indonesia and UAE are present in the 1st Decile picture with greater than 1% of the total. Russia was the highest of the new arrivals at 4% with less than 1% of the total World-Large Cap, and South Africa represents 4% of the 1st decile stocks.The U.S. and China retained their respective positions of #1 and #2, but the U.S. now has 19% of 1st decile stocks increasing by 3 points from last month. China retained 26% of the 1st decile positions. The U.K. fell by 2 points to 2%, which was disappointing, but not as big a drop as Germany ending up with no 1st decile members.
Hong Kong increased by 3 points to 5% as did Brazil. Russia gained 1 point to 5% and the UAE added a Hong Kong increased by 3 points to 5% as did Brazil.
point to reach 2%. South Korea and Mexico both gave up a point dropping to 2% and 1%, respectively.
There are ten sectors that cover the global markets: Basic Materials, Communications, Consumer Cyclical, Consumer Non-cyclical, Diversified, Energy, Financial, Industrial, Technology and Utilities. Within the entire World-Large Cap universe, Financial is the largest sector at 24% giving up 1 point this month. The next two largest sectors are both consumer related, Non-cyclical at 18% and Cyclical at 13% representing a combined 31%. Utilities gained 1 point reaching 5%.
Within the 1st decile ranking there was a good bit of activity. Financial stocks represent the dominate position at 46%, 2 points higher than last month. Industrials held the status quo at 9%. Technology gave up 1 point falling to 4% which was small given the 6-point drop in Communications. Consumer Non-cyclical gave up 4 points settling in at 4%. Gainers included Utilities adding 3 points to 5% and Basic Materials added 4 points to 8%. Consumer Cyclical also gain 1 point to 12%.
Please see the entire report at menu: Client Service >Rankings > World > World LCap-Composite.