The second month of Q4 2015 earnings reports registered an Up/Down Ratio of 1.12—up from the post- financial crisis low of 1.11 last quarter. With 51% of the observations in February, the “Up” count edged out the “Down,” but barely.
Median YOY revenue growth figures for Q4 look awfully similar to the past few quarters—many market cap segments and sectors barely cling to positive readings. Market action is starting to take some of the fluff out of the LTM Price to Sales ratio.
Although the volatility measures couldn’t match last August, the S&P 500 still managed to reach a new contemporary low of 1812 on January 20th. Our Equal Weighted Average has had just one monthly win since its relative strength peak in March of 2015.
The third month of Q3 2015 earnings reports registered an Up/Down Ratio of 1.12. With only 52% of firms reporting higher earnings, the lack of earnings growth isn’t confined to just the Energy and Materials sectors.
In each of our three market cap breakdowns, Growth prevailed over Value, but Large Cap Growth was the only segment with a positive return, at a strong +9%. Growth stocks have experienced impressive outperformance since the middle of 2014.
Our Equal Weighted Average for the index continued its streak of underperformance—losing to the Cap Weighted measure in nine of the last 10 months of 2015. The largest 25 firms were certainly the bright spot for the year—up 7.5% on average.