Growth Rates
Interrupting The Recession Debate With A Reminder Of How Hot The Economy Is
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“Money illusion” continues to complicate analysis of the economy and financial markets. It might be a time when age and experience will actually prove helpful: Only investors who are 65 or older have experienced gaps between “nominal” and “real” data as wide as today’s.
Worrisome Profitability Trend Among Small Cap Companies
Despite a historic economic expansion during the past decade, there is an ever-increasing number of companies that are finding profitability has become harder to achieve.
Earning Momentum
While the current ratio of 1.37 is relatively weak historically, it is still an improvement from the second months’ readings of Q2 (1.27) and Q1 (1.16).
Q2 Median Company Earnings Growth Rates Vary Drastically Across Cap Size
EPS growth for Large and Mid Cap companies continues exceeding their top-line growth, but Small and Micro Cap companies saw their EPS growth rates coming in below their top-line growth rates.
Q2 Median Revenue Comparisons: Higher Growth Across All Segments
Large Cap result this month is the same as last month, but remains stronger than Q1. Smaller firms reversed course, as Mid, Small, and Micro Caps all rebounded with large sales momentum increases.
Q2 Median Company Earnings: Growth Rates Volatile But Positive In General
EPS growth rates are coming in higher than expected. While sales growth remains muted, the ability of companies to do more with less and maintain high operating margins is impressive. Margins are determined at the discretion of management and are thus sticky and unlikely to drop off significantly unless wage pressures resume and slack capacity around the globe is absorbed.
Q2 Median Revenue Comparisons: Higher Growth In Large And Mid Caps
Q2 relative to Q1 growth rates have improved for larger cap companies but deteriorated for the smaller firms.
CAPEX Is Slowing: Which industries still stand to benefit—and which ones are in trouble?
We dig deeper into the capital spending data to determine which industries still could benefit from recent CAPEX trends and which ones are likely to get hurt.
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