Category: Consideration Report
Stock Consideration Report: U.S.
Expectations for SmallCap stocks advanced the most since our last report on 1 November adding 3.5 Fv points reaching 115.3% Fv. Returns for the market classification are also improved and now stand at a gain of 10.6% for the year so far. Earlier in the year SmallCap struggled just to get into positive territory. This is an improvement of nearly 4% from earlier this month. LargeCap remains the leader at 16.2% for the year which is more than double the long-term average of 7%. Valuations remain reasonable at just 7.2 Fv points above 100% fair value. This is well within the normal fair value range, but is an increase of 1.2 Fv points in three weeks. We could easily experience a slight pause in gains as reality catches up to expectations.
USA Stock Consideration Report (November 2017)
Expectations increased slightly for large cap market capitalization stocks to 106.0% an increase of under one percentage point while mid cap expectations increased to 116.5% up from 115.3% and small cap was nearly unchanged at 111.3%. Over valuation pressures remained in check even with large cap stocks posting over a 15% return for the year followed by mid cap with over 10% and small cap remaining positive at nearly 7%. Small cap has struggled all year trying to post positive results, so reaching this level of return without exceeding normal valuations is welcomed.
USA Stock Consideration Report (October 2017)
Selling pressure appears to have stabilized after last month’s drop. Midcap has moved well into fair value territory after spending most of 2017 in cautionary levels. Even smallcap lowered the overvalued stress from earlier in 2017 and is now comfortably in fair value range. Both of these market capitalization areas experiencing lower overvalue stress is comforting given the strong total return performance of the most recent 90 days. Smallcap advanced from a loss of 2.44% to a gain of 8.52% while midcap advanced nearly 8 percentage points reaching 10.00% for the year to date.
USA Stock Considerations
Selling pressure appears to be mitigating across all market capitalization areas, especially in the smaller capitalization category. Midcap has withdrawn from cautionary territory returning to fair value ranges. Currently, 85.8% of stocks are within their normal trading range and considered a Hold. This is 13.9 point change from this time last month reversing an earlier trend toward the Sell and Sell Watch classifications. Valuation distribution has moved toward normal trading values as Sell/Sell Watch classifications dropped to 8.2% and Buy / Buy Watch classifications dropped 2.0 points to 6.0%.
USA Stock Considerations
Selling pressure appears to be mitigating across all market capitalization areas, especially in the smaller capitalization category. Midcap remains in cautionary territory, but did move toward fair value ever so slightly.