Sentences with phrase «rate than a growth stock»

A value stock is often traded at a more affordable rate than a growth stock.

Not exact matches

Growth stocks are also more hurt than value stocks by rising rates, says Savita Subramanian, head of U.S. equity strategy at Bank of America Merrill Lynch.

«I think [the stock] reaction to his comments about slightly strong growth and that the Fed was more likely to raise rates more in 2018 than investors had anticipated,» said Kate Warne, investment strategist at Edward Jones.

On Wall Street, stocks rose on Friday after job growth surged more - than - expected in June, reaffirming labor market strength that could keep the Federal Reserve on track for a third interest rate hike this year.

These risks and uncertainties include: Gilead's ability to achieve its anticipated full year 2018 financial results; Gilead's ability to sustain growth in revenues for its antiviral and other programs; the risk that private and public payers may be reluctant to provide, or continue to provide, coverage or reimbursement for new products, including Vosevi, Yescarta, Epclusa, Harvoni, Genvoya, Odefsey, Descovy, Biktarvy and Vemlidy ®; austerity measures in European countries that may increase the amount of discount required on Gilead's products; an increase in discounts, chargebacks and rebates due to ongoing contracts and future negotiations with commercial and government payers; a larger than anticipated shift in payer mix to more highly discounted payer segments and geographic regions and decreases in treatment duration; availability of funding for state AIDS Drug Assistance Programs (ADAPs); continued fluctuations in ADAP purchases driven by federal and state grant cycles which may not mirror patient demand and may cause fluctuations in Gilead's earnings; market share and price erosion caused by the introduction of generic versions of Viread and Truvada, an uncertain global macroeconomic environment; and potential amendments to the Affordable Care Act or other government action that could have the effect of lowering prices or reducing the number of insured patients; the possibility of unfavorable results from clinical trials involving investigational compounds; Gilead's ability to initiate clinical trials in its currently anticipated timeframes; the levels of inventory held by wholesalers and retailers which may cause fluctuations in Gilead's earnings; Kite's ability to develop and commercialize cell therapies utilizing the zinc finger nuclease technology platform and realize the benefits of the Sangamo partnership; Gilead's ability to submit new drug applications for new product candidates in the timelines currently anticipated; Gilead's ability to receive regulatory approvals in a timely manner or at all, for new and current products, including Biktarvy; Gilead's ability to successfully commercialize its products, including Biktarvy; the risk that physicians and patients may not see advantages of these products over other therapies and may therefore be reluctant to prescribe the products; Gilead's ability to successfully develop its hematology / oncology and inflammation / respiratory programs; safety and efficacy data from clinical studies may not warrant further development of Gilead's product candidates, including GS - 9620 and Yescarta in combination with Pfizer's utomilumab; Gilead's ability to pay dividends or complete its share repurchase program due to changes in its stock price, corporate or other market conditions; fluctuations in the foreign exchange rate of the U.S. dollar that may cause an unfavorable foreign currency exchange impact on Gilead's future revenues and pre-tax earnings; and other risks identified from time to time in Gilead's reports filed with the U.S. Securities and Exchange Commission (the SEC).

For example, if company ABC and XYZ are both selling for $ 50 a share, one might be far more expensive than the other depending upon the underlying profits and growth rates of each stock.

So long as you hold onto these stocks, they will hopefully grow at a faster compounded rate than non growth stocks and cause no tax liability.

Bonds, stocks and real estate, he writes, are overvalued because of near zero percent interest rates and a developed world growth rate closer to zero than the 3 % to 4 % historical norms.

World growth will remain low on average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better than expected, even though the four - year old cyclical bull market is long by historical standards.

Every defense of current P / E ratios must assume either a higher long - term growth rate than is evident from historical data, or it must assume that investors are willing to hold stocks for a long - term return of substantially less than 10 %.

The rate of growth will be much lower than investing in a diversified basket of stocks and bonds through a 529 plan.

To some extent, stock market action also implies expectations for slower economic growth, though interest rate signals, such as a flat yield curve, are more suggestive of slow growth than stock market action is, and we've yet to see a substantial widening of credit spreads that would suggest imminent recession.

The evidence that firms with employee stock ownership and / or profit sharing perform better than others suggests that policies that extend ownership would boost the country's lagging growth rate.

Clearly, combining dividend reinvestment, with high yielding stocks that offer a good rate of dividend growth pays more than dividends!

A stock's PEG ratio — its price - to - earnings ratio divided by the growth rate of its earnings — often is considered a more complete assessment of a company's current valuation than a P / E ratio because it takes earnings growth into account.

In general, they are looking for companies growing at superior rates than the general marketplace, but are unwilling to pay the extremely high multiples associated with the hyper growth stocks.

While the company's five consecutive years of dividend increases is a bit shorter of a track record than I'd typically like to see, the dividend growth has been tremendous: the stock's three - year dividend growth rate is sitting at 44.2 %.

The results offer generally good news, as stocks have mostly interpreted rising interest rates as a signal of better economic growth rather than harmful inflation.

The current yield of 1.55 % might not be massive like AT&T's dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney more than makes up for that via strong dividend growth: the five - year dividend growth rate is 30.1 %, which is one of the higher rates you'll run across.

Stronger - than - expected earnings growth of 18 % for the S&P 500 have helped stocks move higher, but potential causes of volatility, including additional tariff proposals and rising interest rates, continue to be headline risks.

It's hard to see AZO growing much slower than 6 % for very long, and a growth rate in the double digits could definitely send AZO stock above $ 1,000 / share.

As you can see many of the stocks mentioned may have high current PE's but also feature long to very long dividend histories with relatively high ten year annualized dividend growth rates at around or better than 10 %.

A key indicator of a strong stock, they believe, is an earnings growth rate that is greater than the stock's price / earnings ratio.

In general, with growth stocks, never pay more than 2 times the earnings growth rate for the P / E of the company.

The average member of this group should grow by about 11 %, far lower than the most expensive stocks» 20 % growth rate, but at less than half the valuation.

The bottom line: If you want to put your money in a company that beats its peers in its sector and the market as a whole by bringing in more money each quarter and grows at a faster rate than all the rest, growth stocks are for you.

Because these venture capital firms want higher return rates than other investments such as the stock market provide, they typically invest in promising startup or young businesses that have a high potential for growth but are also high risk.

A stock like Alphabet (formerly Google) isn't likely owned in a value ETF due to its growth rate and P / E ratio both being higher than average.

For high - growth stocks, the growth rate (g) may be higher than the required rate of return (r), in which case the suggested stock value would be a negative number.

Not all dividend stocks are the same; some are slow - growth dinosaurs that are little better than bonds with respect to their sensitivity to rising interest rates.

By pretty much all measures, it offers access to higher growth rates at lower valuations than the average European stock fund does.

Buying stocks with a price less than or equal to two - thirds of the tangible book value would have generated an average compounded growth rate of 14.2 %.

Since the rising rates are happening in a profitable economy with strong growth forecasts and increasing dividend payouts (with an extra boost from the income tax reduction,) the variables impacting the equity duration are moving to love stocks rather than hate them.

And since the fund holds more than 400 different stocks, you can benefit from these companies» rapid growth rates without depending too much on any single company's performance.

Twilio posted a solid month in February, showing extremely high rates of revenue growth of greater than 60 % outside of Uber, while gross margins were stable, which led to the stock's significant advance.

If we get a strong headline reading and better than expected growth in wages, we will likely see investors move more into stocks and out of bonds, pushing up the Treasury yields and mortgage rates.

Divided growth stocks provide a great hedge against inflation since most dividends grow faster than the rate of inflation.

There's much more to picking growth stocks than simply looking for those with the highest growth rates.

It is also misleading to write - off high multiple stocks as not being value opportunities — there are some businesses with growth rates and returns on incremental invested capital that can more than justify an optically high earnings multiple.

While the company's five consecutive years of dividend increases is a bit shorter of a track record than I'd typically like to see, the dividend growth has been tremendous: the stock's three - year dividend growth rate is sitting at 44.2 %.

The current yield of 1.55 % might not be massive like AT&T's dividend (which is why we diversify, and it's why I'm listing 10 different stocks with different dynamics here), but Walt Disney more than makes up for that via strong dividend growth: the five - year dividend growth rate is 30.1 %, which is one of the higher rates you'll run across.

The additional shares purchased with reinvested dividends have grown the portfolio enough so that its overall income rises faster than the dividend growth rate of any stock in it.

If we balance the potential returns and the potential risks, we find that fixed - rate or fixed index annuities will be principle protected and provide growth that may well be lower than the growth of stocks and mutual funds in particular.

In general, they are looking for companies growing at superior rates than the general marketplace, but are unwilling to pay the extremely high multiples associated with the hyper growth stocks.

Value stocks» outperformance is even more pronounced for small and mid cap companies, because they tend to trade at even bigger discounts due to illiquidity and lack of analyst coverage, as well as being able to achieve higher growth rates than larger companies.

When interest rates rise, high yield stocks will see their values decline more than dividend growth stocks.

Every dividend growth investor is looking for a stock that will increase its dividend each and every year at a rate that makes the stock a better investment than fixed income alternatives.

That includes equities tied to global growth rather than low interest rates, such as base metals and energy stocks.»

In terms of the stock market as a whole, the earnings growth rate is slightly less than the growth rate of the Gross Domestic Product (GDP).

Many non-profit education stocks have less than average rates of growth in earnings and sales and less than market price - to - earnings / price - to - sales ratios as defined by Fidelity are not a value stock as defined by Buffett.