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2 posts tagged with "financial+sector"

Financial Sector an Earnings “Boat Anchor”

Posted by Tim Hope on 9/22/08 12:11 pm

With the disarray in the financial sector, excluding the sector can offer an insightful look at the earnings outlook for the rest of the market.  Interestingly, when the “boat anchor” financial sector is excluded, the S&P 500 is still shown to be producing double digit forward earnings growth to the tune of about 10.9%. 

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Energy and Financial Sector PEG Ratio Comparison

Posted by Tim Hope on 9/8/08 11:26 am

The PEG ratio (a ratio of P/E divided by expected earnings growth) is a popular valuation measure as it allows for a convenient method of comparing stocks with different growth rates.  The same principle can be applied to industry sectors.  Recently the energy sector has been particularly hard hit in terms of performance while just the opposite has occurred with respect to the financial sector.  However, when looking at the PEG ratio for each sector it can be argued that the energy sector is now at a point where it is more attractive than the financials.

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