Corequity Performance of Screens

Since inception in September 2004, the Undervalued Screens have outperformed the Overvalued by over 700 basis points per annum.

 

The last 12 months have been extraordinary in terms of performance. The Undervalued Screens have outperformed the Overvalued by close to 40%.

These tables show where the performance has come from in the two screens.  The first shows the average percentage of Relative Strength (to the S&P 500) by Sector for the Undervalued.  However, it is the second chart which shows each Sector of the Screen ranked by their total contribution to performance, i.e. the sum of the Relative Strength to the S&P 500.  In this case the Industrials, Consumer Cyclicals and Technology are the top 3 Sectors

In the case of the Overvalued screens, the major contributors are Energy, Basic Materials and Industrials.  An investment manager commented that the Energy Sectors poor performance was due to the weak prices but that doesn't take into account that the Energy equities were very overvalued given their normalized earnings.

Here is a look at the results for the May 31st screens in June.

For the guide to Corequity analysis, click here

(c) 2017 Robert L. Colby