Sentences with phrase «returns than growth»

Value has higher expected returns than growth, so a Large Value fund maybe has a 60 % chance of beating the S&P 500.

Finally, there are behavioral biases that lead value stocks to offer higher prospective returns than growth stocks.

In the long run, value stocks have generated higher returns than growth stocks, which have higher stock prices and earnings, albeit because value stocks have higher risk.

But long - term data show that investments in value companies (which have low price - to - book ratios, and are often out of favor) have produced higher returns than growth companies.

However, every academic I'm familiar with expects that, over the long term, stocks will continue to have higher returns than bonds, that small - cap stocks will continue to have higher returns than large - cap stocks and that value stocks will continue to have higher returns than growth stocks.

For this reason, a value stock is typically more likely to have a higher long - term return than a growth stock because of the underlying risk.

Dividend option will have lessor return than Growth option.

Their priorities at the corporate level are more about cash return than growth (especially a time when much of the industry is experiencing shrinkage), and that trickles down into development.

Not exact matches

Fast forward to 2017 and AIG finds itself with a new CEO, Brian Duperreault, a former employee who promises to return the company to growth rather than break it up.

They expressed a strong bias toward revenue growth over cost reduction (64 % vs. 18 %), and an equally strong bias toward investing cash rather than returning it to shareholders (57 % to 14 %).

Another thing to note about IBLN is that it tilts toward growth stocks and technology names, and that has made it significantly more volatile than the S&P 500 but has failed to boost returns, Bogart said.

Since the beginning of 2008, the Russell 3000 growth index outperformed its value counterpart by more than 70 percentage points, returning 10.3 % annually, compared with 7 % for value stocks.

«While revenue for Q4 and FY18 was below expectations due to lower than anticipated smartphone unit volumes, Cirrus Logic made meaningful progress this past year on numerous strategic initiatives that we expect to position the company for a return to year - over-year growth in FY20,» said Jason Rhode, president and chief executive officer.

Netflix CFO David Wells added that the company has found returning shows do a better job of boosting subscriber growth than brand - new ones.

I was CFO of a successful software company that had to show average returns of more than 25 percent of revenue to the bottom line after taxes, growth of more than 50 percent per year for five years and an excess of $ 20 million in annual revenue before the bank would release the owner's personal guarantees.

While he thinks Starbucks» EPS growth could slow from the 30 % it has averaged for the past five years, he still expects earnings to more than double by 2021, «enough conservatively estimated to get us to a strong double - digit return.»

We believe the equity market is becoming fully valued and active investment strategies towards domestic growth and small caps ought to deliver better returns than multinationals and large caps.

This would sharply enhance growth rates during the expansion phase, much like margin borrowing enhances returns when market prices are rising faster than the debt servicing costs, but at the expense of sub-par performance once conditions reverse.

Thus, many emerging markets» growth rates in the next decade may be lower than in the last — as may the outsize returns that investors realised from these economies» financial assets (currencies, equities, bonds, and commodities).

Since earnings growth for the S&P 500 has never grown faster than about 6 % annually when properly measured from peak - to - peak or trough - to - trough, we're talking about a long term total return of about 7.2 % if - and it's a big if - P / E ratios were held at current extremes forever.

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 %.

It is worth noting, however, that we believe it is incumbent on the government to keep spending within declared levels, and to appropriately apply any unexpected gains (i.e. from a stronger than forecast GDP growth, higher energy prices, etc.) to the deficit and thus hasten the return to a balanced budget.

Overall, cash returned to shareholders is much lower today — even with the recent surge instigated by activist campaigns — than in decades past when the economy enjoyed much more robust growth.

Conversely, a return to an unemployment rate of even 6 % in 2024 would leave the growth rate of employment over the next 8 years at less than 0.2 % annually.

Logically, by taking more risk — in paying up to own «growth» stocks at higher multiples than the market average — one should expect to achieve higher returns.

As our model forecasts, despite more than 30 % growth in R&D annually through FY 2017 to $ 13.5 billion (up from $ 1.8 billion in FY 2010) and your updated capital return program, Apple's net cash position (currently the largest of any company in history) will continue to build on the balance sheet.

Notice that the positive relationship between monetary growth and subsequent market returns (a coefficient about +0.4) is weaker than the negative relationship -LRB--0.6) that initiated the monetary easing in the first place.

Growth stocks lead Value as Technology stocks were a significant driver of returns, accounting for more than 40 % of the S&P 500 Index gains in Q1.

And if you can buy some business that earns high returns on equity and has even got mild growth prospects, you know, at much lower multiple earnings, you are going to do better than buying ten - year bonds at 2.30 or 30 - year bonds at three, or something of the sort.»

This leaves roughly 1.4 % of historical long - term returns which can be attributed to past expansion in the Price / Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster than the 5.7 % average rate of earnings growth).

While all growth investors will inevitably put more emphasis on the business story and the potential for expansion than a value investor, sensible growth investors look at cashflow and return on capital employed to see how the company is multiplying their investment.

«to provide a level of protection from the effects of inflation by generating a total return (the combination of income and growth of capital) consistent with or greater than the rate of UK inflation over a rolling three - to five - year period.

If you buy stock in an overvalued company, your returns are likely to be less than the sum of dividend yield and dividend growth.

If you let this work against you, the return may be somewhat less than the yield plus the growth, but if you work it in your favor, the return may be somewhat more than the yield plus the growth.

By taking this diversified and balanced approach, investors in the Growth Account have achieved an average return of 8.5 % before tax — higher than the target rate of 6 % — as shown in the chart below.

If, instead, you buy quality undervalued companies, your returns may be greater than the sum of dividend yield and dividend growth.

Do you mean that since the growth is not «dragged» by taxes that provides more return to compensate for potentially higher than expected inflation?

Cisco Systems Inc (NASDAQ: CSCO) is a top riser on the Dow after reporting second quarter earnings that beat expectations and returning to revenue growth for the first time in more than a year and a half.

We see future returns driven primarily by income in fixed income and earnings growth in equities, rather than by a re-rating spurred by a decline in rates and risk.

In a rate environment we think of as normal (interest rates slightly higher than inflation), we believe these companies can earn 10 % on equity and if they don't have organic growth opportunities, can return all of it to shareholders.

Twitter Inc on Thursday delivered its first quarterly profit and an unexpected return to revenue growth helped by expansion outside the United States, pushing shares in the social network to more than two - year highs.

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.

While many people believe that growth in the years ahead will be lower than it has been in the past, we can also observe that cash per dollar of earnings has increased over the years for S&P 500 companies as returns on capital have increased, while the cost of capital has fallen with lower interest rates.

Visa's valuation should be seen as a reflection of both healthy growth and strong returns, while PayPal's is driven more by growth potential than by profitability.

Keep in mind that HASI's has maintained a more predictable dividend growth profile than the mREIT peers, so from a risk / return perspective, I consider HASI's platform more appealing.

We consider the starting point valuation of value stocks (or any style factor, for that matter) to be a far more accurate predictor of future returns than the outlook for economic growth.

Since the industry consolidated and management incentives changed to being based on returns on capital rather than growth, capacity (supply) growth has tracked GDP (demand) growth closely, free cash flow generation has been significant and consistent, and the companies have consistently paid down debt, bought back stock and paid dividends.

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.

During that run, the S&P produced a total return of more than 335 %, * driven largely by outsized gains in growth stocks.

We see market returns being driven by earnings growth, dividends and coupons, rather than rising valuations.