Tag Archives: John Butters

FactSet Earnings Estimates and Ratio Review – Part II in Market Valuation Series

John Butters our friend at FactSet, (a treasure of information resource) released a 37 page report in timely fashion for our Valuation Series. We are especially fond of Butters who takes the time to personally email us the “ok” to reproduce portions of his report…thanks again John!

Recall our first in Valuation Series here, where we reviewed the Buffett back of the Napkin Valuation of GDP to S&P 500 Market Capitalization…. While maybe not flashing Bright Red, it was in never seen before high valuation territory…

FactSet Valuation Analysis

Here we are again showing a likely never before seen high chart value … Flashing bright Yellow or maybe Light Red. Way up high as printed is overvalued…

Unlike the prior charts, this one is GREAT going up…

This Chart is the Q1 2021 Earnings Expectations. In September of 2020 expectations were for a negative yes -13% year over year earnings… today barely positive, but positive!

Now here is the REAL GOOD news, Q 1 2020 was mostly unscathed by the lockdowns… meaning this is a very aggressive comparable to a more normal year, also meaning the following quarters will likely print huge positive growth numbers due to easier comparisons…

With a little luck, maybe we can grow into our larger than fitting/high valuation clothes over the year!

Lemonade out of Lemons … MAYBE, but bad things do not always have to happen…

Lots of risk, lot’s of things that could go bad, but again they do not HAVE to!

No time to swing for the fences — We NEVER do!

Have a Great “FactSet High Valuations but a Safe Way Out” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents

Earnings Estimates Coming Back … Slowly

Earnings are the ultimate driver of stock prices …

Managers work VERY hard to estimate what they will earn and carefully deliver that information to Wall Street – Carefully because a disappointment leads to loss of trust, embarrassment, and likely a slammed stock price – Think of it as blowing your budget in a public forum …

Estimates Return – SLOWLY

A short personal story – long time followers know copyright is very important, so when using others material, we always ask for permission if it is not clear we can reproduce the material – John Butters the continuous author of this report personally took the time to email me back, thank me for the request to use his material and said of course – making us even happier and more frequent users of his material…. ok, slight digression …

For the second quarter, 53 S&P 500 companies issued quarterly EPS guidance, which was the lowest number of S&P 500 companies issuing EPS guidance for a quarter since FactSet began tracking this metric in 2006.

From our dear Friend John Butters at FactSet:

Managers being conservative and protecting their names, pulled estimates … actually not surprising due to the circumstances….

Slowly they are getting confident enough to put estimates out there…. good progress as the look through continues!

Have a Great “Earnings are coming back” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.

A Dallas Texas based fee only

Financial Planning Total Wealth

Management firm.

jkfinancialinc

street-cents