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 Plus individual stock ranking, please reference the data on our site, www.investment-strategy.info. (MENU: Client Service > Rankings > World > World LCap-Plus Composite) The Rankings: World Markets – LCap Plus 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 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 Plus.
The complete list covers 2,800 stocks (1,300 more than the World Large Cap Report) 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 49% of the total followed by the U.K. at 11%. It is much different than the percentage breakdown in the World Large Cap market where China is #2. Japan shares the #3 slot with China at 6%, each. The rest of the market holding more than 2% of the total is limited to 5 additional markets, France, Germany, Canada, India and Hong Kong.
This group is ranked using the six factors mentioned earlier, and then ranked from 1 to 100. The rankings fall into deciles. The first decile is the most desirous and the tenth decile, the least promising.The USA position in the market remains dominate at 27% while China’s opportunity comes to the front with nearly 3 times more than the number of stocks percentage. Britian’s 1st decile percentage matches the number of stocks percentage at 11% placing it third in the rankings. Japan moves back a bit with 6%, but remains in the top 5. Canada and Hong Kong both have a higher 1st decile percentage than number of stocks percentage. Germany failed to get above 2% in the 1st decile rankings Australia, South Korea, Taiwan, Russia, South Africa and Thailand all reached 2% on the 1st decile ranking even though they do not hold at least 2% of the number of companies.
Segmenting the stocks within the World Large Cap Plus universe, Financials dominate at 27% close to the same level in the Large Cap market. Consumers hold the next spot at 33% combined with cyclical and non-cyclical with Industrials at 11%. The distribution amongst the sectors in the Large Cap Plus universe is very close to the distribution of the World Large Cap universe. In addition to the consumer related sectors, Industrials and Energy both have a higher percentage in the World Large Cap Plus than the World Large Cap universe.
Information Technology, Utilities, Basic Materials and Communication all had slightly less presence in the Plus universe than the Large Cap universe.
Within the 1st decile ranking Financials holds the #1 position at 44% followed by Consumer Cyclical at 15%. Combined the consumer side holds 20% of the 1st decile stocks. It is interesting to see the big difference between the number of stocks in Consumer non-cyclical at 17%, and the low percent of 1st decile stocks at 5% a good 12 point difference.
Basic Materials has a higher 1st decile percentage than number of stocks. While Industrials and Utilities are slightly below.
For a complete report please go to Menu > Client Service >Rankings > World > World LCap Plus Report