Overall fair value influence moved slightly in favor of revenues and earnings along with a slight decline in the importance of dividends. Large Cap stocks matched the overall market with slight increases in the influence of both revenues and dividends, but also experienced a 1-point increase in dividend influence. MidCap stocks experienced drops in the influence of all three areas in relationship to the total market. However, the drop in earnings influence was larger than the overall market. Small Cap moved in the opposite direction of Mid Cap with increases in all three. Earnings made the largest influence increase that exceed 1 point.
All market capitalization classifications are within 10 percentage points of fair value (100.0% Fv). Large Cap is demonstrating the highest expectations at 106.3% Fv followed by Mid Cap at 99.1% Fv. There is less enthusiasm in Small Cap stocks where market prices are lower than valuations by 10 percentage points at 90.0% Fv. See the full report with complete U.S. market coverage at: Client Service > World Markets > Americas > USA Stock Fair Value Report
The American market is positioned nicely within Total market fair value at 104.9% Fv indicating higher expectations from the market with an increase of 2.2 points. Only one sub-sector has reached a Cautionary level in valuation and it is Large Cap Consumer Discretionary
The Canadian market has moved very close to fair value at 102.9% Fv (Fair Value). Large Cap stocks have the highest expectation at 105.0% Fv followed by Mid Cap at 100.1% Fv. Mid Cap expectations match their valuation within 0.1 percentage points.
Small Cap is undervalued at 77.0% Fv, but be careful as there are just 2 stocks in this category. More are being added. See the full report in World Markets.