10 stocks tell you why U.S. stocks plunged!

On February 24, 2020, the U.S. stock market plummeted by 1,000 points. Since the outbreak of the new coronavirus epidemic, although market funds have already begun to flow into safe-haven assets such as gold and bond markets, the epidemic does not seem to have an impact on the stock market trend.

As the new coronavirus epidemic spread further, and companies began to publish performance reports, investors began to worry that the epidemic would affect the company's next quarter's profit growth and made predictions for the company's next quarter's performance.

Analysts lowered the companies The profit forecast for the next quarter, and the Fed is expected to cut interest rates in March, the Fed's rate cut indicates that the economy may further decline.

S & P 500 Index

Fed watch

As an investor, you need to know how to value a company using PEG indicators. Generally speaking, the valuation using the PEG indicator is more accurate, but it is only used to analyze the latest quarterly data, because the company's profit growth is always changing, and the long-term valuation of the company may not be applicable. The so-called PEG indicator is the company's price-earnings ratio (PE) divided by the company's annual growth rate of earnings per share (G).

(PE) simply reflects the current value of a stock, and PEG links the current value of the stock to the earnings growth of the stock. For example, the current price-earnings ratio of a stock is 20 times, and the performance report shows that the annual growth rate of EPS is 20%, then the PEG of this stock is 1. When PEG equals 1, it indicates that the valuation given to this stock by the market can fully reflect the growth of its performance.

PEG = PE / G x100

If the PEG is greater than 1, the value of the stock may be overvalued, or the market believes that the company's performance growth is lower than market expectations. When the PEG is less than 1, the value of the stock may be undervalued, or the market believes that the company's performance growth is higher than the market's expectations.

Usually, the company's profit is in the growth stage, and the PEG index will be lower than 1. Investors need to note that like other financial indicators, PEG cannot be used alone, and must be combined with other indicators. The most important thing here is the expectations of the company's performance.

Then, by analyzing the company's profit forecast for the next quarter, we analyze the PEG index of the ten weighted stocks of the S & P 500 index.

Microsoft PEG=0.96

Apple PEG=1.38

Amazon PEG=2.421

Google PEG=2.24

JPMorgan PEG=0.77

Johnson & Johnson PEG=4.28

Visa PEG=2.48

Procter & Gamble PEG=9.52

Mastercard PEG=2.16

Facebook PEG=1.63

The analysis of the PEG index of the top ten heavyweights of the S & P 500 shows that the value of most companies' stocks is overvalued, so the decline in company stock prices is reasonable, and the value of the US stock market may also be overvalued, causing the US stock market to fall.

Comments

4 economic indicators that must be observed!

Stocks are one of the simplest and most passive types of income, but when we invest in the stock market, we always feel that the current stock price is on the high side, but if we don’t enter the market to buy stocks, we are afraid that the stock price will continue to rise. When the U.S. stock market continues to hit new highs, should it enter the market or should it wait and see and wait for the crash to enter the market. First of all, I want to declare that I am a value investor and insist on the BUY AND HOLD operation method. We all know that stocks are cyclical, and we are now experiencing the longest bull market in history. Stock market analysts believe that a crash may come at any time, but we just have no way to predict the specific time. I believe everyone understands. But I know that a bear market will definitely come. The long-term trend of stocks often has several economic data as a reference. Today we will take a look at these economic data. source: tradingview...

C3.ai stock forecast 2025: Is it time to buy now?

Few emerging technologies are as exciting as artificial intelligence. We have witnessed its ability to be applied in new ways, from quickly analyzing large amounts of data to improve the efficiency of hardware and software. C3.ai(AI) is one of the only companies in the world that develop artificial intelligence into independent services. In short, artificial intelligence is its entire business. Investors avoided such stocks this year because large technology companies began to engage in artificial intelligence projects, raising concerns about increased competitive threats. However, C3.ai continued to increase revenue, narrowed its losses, and added 82% of its customers in the fourth quarter of fiscal 2021. Therefore, the stock price has fallen about 60% so far this year, which may be a huge opportunity for those who want to get involved in this field. A unique business case Imagine that if a company needs to develop its own artificial intelligence, sim...

The signal that the stock market has peaked?

the stock market Although I know how to judge when the bear market is over and when I should buy at the bottom, I still don't know how to judge the selling at the top. I'm afraid I don't know when to leave the market after buying stocks in the future. If you have also tried to avoid the crash, stock market crash, and even bear market, or always hold stocks at these times. These four tricks are based on my experience in the stock market for more than 10 years. They help me hold cash early before many market declines, so I suggest that you must see the end. It is likely to help you invest in stocks. Raise to another level. Because knowing how to go is more important than knowing how to buy, and knowing how to go is an important factor in determining how much you can earn or lose. The first trick, everyone needs to learn to identify the Distribution Day. As the name implies, the shipping day is a day of huge selling pressure. On that day, it may be that large account...

Will the Great Depression make a comeback?

the Great Depression On March 21, 2020, the United States already had initial unemployment data. Exceeding market expectations, the number of applicants reached 3.28 million, a record high. The current unemployment situation in the United States. Before March 7, employment in the United States was not affected by the epidemic. In the week of March 7, the number of people applying for unemployment benefits for the first time in the United States was 211,000, a decrease of 4,000 compared to the previous week. It is still healthy. This shows that the United States is in a good employment track range. The actual data began to fluctuate, that is, the data for the week of March 14, the number of people applying for relief reached 282,000, a slight increase. On March 21, the number of people applying for unemployment benefits soared to a record high this week. 1.7 million people have far exceeded expectations, and market expectations are about 1.5 to 1.7 million people. It can be said...

Bear market coming, gold(GLD) assets become essential

The economic data of the global economic powers have been deteriorating, entering the bear market stage of the economy, and people have become more cautious when choosing asset investment. We should choose investment products with a low correlation coefficient with economic performance and investment products suitable for the current economic cycle. Investors should pay more attention to foreign exchange and commodity markets so that they can add value to your assets. Among many assets, anti-inflation commodities such as gold have become essential assets. Take gold as an example. For many years, gold has been regarded as an anti-inflation commodity by international capital markets and has been regarded as an important asset hedging tool by investors. There is also a saying, "The world bought gold during turbulent times." From basic political theory, we know that gold is not currency, and the currency is naturally gold and silver. Although gold has withdrawn from ...

TSM Stock Forecast and Price Target 2021

Today, I will analyze TSMC stocks in-depth with you. In the semiconductor sector, TSMC has always been my most promising stock. TSMC has just announced its results for the fourth quarter of 2020. At the same time, there are new developments in the entire chip industry recently. Therefore, today I will combine the financial report and chips. The latest developments in the industry to analyze the trend of TSMC stocks, First of all, we analyze TSMC’s fourth-quarter and full-year 2020 financial reports to see what are the key points worthy of investors’ attention. First, TSMC’s fourth-quarter revenue and profitability are very good. Compared with the outlook for Q4 in Q3, the outlook at that time was US$12.4-12.7 billion, and the actual revenue was US$12.68 billion. Actual revenue As the upper limit of the outlook, the gross profit margin outlook is 51.5%-53.5%, while the actual gross profit margin is 54%, which is better than the outlook. The operating net profit margin is expected t...

4 George Soros advice to investors!

Who is George Soros? George Soros is a Hungarian-born Jewish businessman. It is one of the most influential investors in the world. In 1969, the Double Eagle Fund was established for Arnhold & S. Bleichroeder, an investment management company. In 1973, Soros and his assistant Rogers left Bleichroeder to co-found Soros Fund Management. In 1979, the well-known Quantum Fund was established and continued to make profits. In the Asian financial turmoil in 1997, George Soros sniped the Thai baht and the Hong Kong dollar, which was frightening. Learning from the experiences of successful people can benefit a lot. Here are 4 tips George Soros gave investors. First, to be successful, you must have ample free time. Most people want to be rich, but not everyone realizes the importance of free time. Many people spend a lot of time working to accumulate wealth, sleep, and forget. Set the goal to complete the work indicated by the superior, or the needs of business partners. But they hav...

How to judge the market entry signal?

buy sell Most people lose money when investing in stocks. One of the biggest reasons is that they buy stocks at the wrong time. Why did they buy the stock at the wrong time? Facts have proved that many people do not know that stocks only rise 1/4 times, and that is the easiest time to make money. And in another 3/4 of the time, making money is difficult, and losing money is easier. Today, I will share how to choose the right time to buy stocks. I hope you can see the final result because, in the end, I will share with you how to use simple technical indicators to help us find the exact input time. First of all, everyone must know a concept, whether it is a stock market or a stock, there are four stages. Let us take the stock market as an example. The first stage is called the "next stage". At this time, the market has just experienced a sharp decline, and most investors in the market are not interested in the stock market, because their memories are still stuck in t...

BABA stock forecast 2025: The failure of Ant Financial's IPO

Ant Financial’s IPO was canceled, causing Alibaba’s share price to fall, Alibaba has been unfavorable this year. First, the cancellation of Ant Financial's IPO indirectly caused Alibaba's stock price to fall, and now there is an antitrust investigation led by Alibaba, which caused Alibaba's stock price to plummet by 15% in a single day. From the highest point in October, the stock price of 319 dollars has fallen by as much as 30% to 222 dollars. From the perspective of K-line, Alibaba has reached the Oversold area, and it will rebound upward in the short term. From the perspective of valuation, Alibaba’s valuation is as high as US$388, which is 74% of the current share price of US$222. Value-added space, so it seems that whether it is viewed from the short-term K-line or the long-term valuation, now is a good time to buy the bottom of Alibaba. Before investing, I will analyze and analyze the root cause of the disadvantage of Alibaba this time, because if this problem is not...

The thinking of value investing

value investing The epidemic continues to spread, the population of new crown infections keeps growing, and the world's economy is facing a huge cold winter. During this period, the death of black people in the United States even changed from anti-epidemic to protest, and economic and social life has always been difficult to return to the right track. But what is surprising is that the US Nasdaq index has gone out of the V-shaped reversal in just over two months, hitting a record high. Looking at the record, some customers left the market in the stage of the world epic plunge in mid-March, and recently reluctantly added the position back, the difference between the previous one and the next 10-15%, this is almost a return The average return of a good fund manager in a year. Sometimes, we always take a look at ourselves, thinking that we can sell high and sell low to make a difference, and even straighten the stock index line, but in the end, it is a fierce operation, al...

FinanceLinkway

Search This Blog