S&P 500’s Performance in the Week Ending December 15
After rising for three consecutive trading weeks, the S&P 500 traded with strength last week and recorded its fourth consecutive weekly gain.
On Monday, the FTSE 100 Index opened the day higher and traded with strength above opening hours in the morning session.
The Shanghai Composite Index rose 0.05% and closed the day at 3,267.92 on Monday. The SPDR S&P China (GXC) fell 0.41% on December 15.
Wall Street Analysts’ Ratings on Interactive Brokers
In November 2017, six analysts were tracking Interactive Brokers Group (IBKR) and one analyst gave a “strong sell” rating while another rated the stock as “strong buy.”
Interactive Brokers Group (IBKR) has a price-to-earnings ratio on NTM (next-12-month) basis of 33.30x. The average price-to-earnings ratio on an NTM (next-12-month) basis for its peers stood at 15.82x.
Interactive Brokers Group (IBKR) reported total non-interest expenses of $158 million in 3Q17, compared to $162 million in 3Q16, reflecting a decline in general and administrative expenses.
KeyCorp’s Valuation Is Close to Industry Average
KeyCorp’s valuation looks slightly overvalued compared to KBE. However, it’s undervalued compared to KRE, the regional banking ETF.
KeyCorp is a large regional bank with about $94 billion in assets. It competes with JP Morgan (JPM) and Bank of America (BAC) in various service segments.
KeyCorp (KEY) is represented in key ETFs focused on the banking sector. The SPDR S&P Bank ETF (KBE) has KeyCorp comprising ~1.7% of its portfolio.
Bank of America: Growth, Reforms, and Central Banks
The US Senate has passed legislation to amend tax rates from 35% to 20%, which should help windfall gains for corporates and affect equities, bond markets, liquidity, the federal budget and countrywide…
Bank of America (BAC) grew its dividend by 60% to $0.12 per share in 3Q17. The growth was due to its operating performance, shareholder expectations, and stress test clearance. All major…
Rising rates have resulted in lower credit offtake for commercial banks (XLF) over the past couple of quarters. The Fed has indicated further rate hikes in 2018, and with tax…
How Wall Street Analysts View Visa Stock
Of the 41 analysts tracking Visa (V) in December 2017, 19 recommended a “buy.” Four analysts recommend a “hold” for the stock.
Visa’s (V) price-to-earnings ratio on an NTM basis stood at 26.3x.
Visa reported a return on invested capital on an LTM basis of ~15.2%.
Why PNC Financial Has Been Pricing at a Premium
PNC Financial (PNC) successfully diversified its banking operations by extending offerings in asset management, consumer services, and investment banking.
In 1Q15, PNC Financial bought back 4.4 million common shares worth $0.4 billion. The purchase was part of its four-quarter repurchase program.
PNC Financial’s non-interest income declined by 10% compared to the previous quarter—mainly due to higher fourth quarter gains on asset dispositions.
CME Returned $1.6 Billion in 2015: What About Dividends?
CME Group (CME) has returned more than $5.6 billion to shareholders in the form of dividends since the variable dividend policy in 2012. In 2015, CME declared dividends of $1.6 billion.
CME Group (CME) recorded average daily volumes of 18.2 million in January 2016. This compares to average daily volumes of 13.2 million in 4Q15.
CME Group’s (CME) operations outside the United States are expanding at a good pace. Volumes are impressive as CME leverages investments in global headcount, partnerships, and product development.
Fixed-Income Factors in Target Date Strategies
Fixed-income factors are not as widely discussed as equity factors, but they are equally important in designing a target date portfolio in an attempt to improve participant outcomes.
Each factor of a fixed-income portfolio—so interest-rate sensitivity, credit exposure, and inflation sensitivity—may play an important role in constructing a dynamic fixed-income portfolio for target date investing.
Another common factor in fixed-income investing is credit exposure because investing in securities with an element of credit risk has historically generated positive risk premiums over time.
How MetLife’s Valuation Compares
MetLife (MET) has a next-12-month price-to-earnings ratio of 11.3x, lower than peers’ average ratio of 15.1x. Peers (XLF) CNO Financial Group (CNO), Reinsurance Group of America (RGA), and Arch Capital Group…
Of the 16 analysts tracking MetLife (MET) in December 2017, one has recommended “sell,” three have recommended “buy,” six have recommended “strong buy,” and six have recommended “hold.” In November 2017, one recommended “sell,” five recommended…
Whereas MetLife’s (MET) total assets fell to $720.5 billion at the end of 3Q17 from $898.7 billion at the end of 4Q16, its total investments rose to $445.7 billion from $420.9 billion,…
Why the Importance of ESG Investing Has Grown over the Years
In this series, we’ll be looking at the dividend yield of some of the ESG-compliant stocks that have been chosen based on their holdings in the iShares MSCI USA ESG Select ETF (SUSA).
In this series, we’ll look at 11 S&P 500 companies offering high dividend yields.
Consumer Staples Select Index sales, earnings, and dividends have grown at a CAGR[1. Compound annual growth rate] of 2.3%, 2.9%, and 7.4%, respectively, between 2012 and 2017.
Are You Paying $106,000 for Coffee?
What’s harder than getting your clients who are reluctant to save to have the discipline to regularly contribute to their investment portfolio?
At the top of every equity market cycle, some prognosticator invariably claims “this time it’s different,” helping foster pro-risk behavior and a false sense of security at precisely the wrong time.
“Computer power is growing significantly, algorithms are becoming more sophisticated, and, perhaps most important of all, the world is generating vast quantities of fuel that powers AI—data.”