Top 100 Most Valued Companies
There is a lot of hope built into current market expectations for the continuation of strong profit increases in the quarters ahead. This is despite clear evidence, as of late, that profitability has begun to decline particularly with negative pre-announcements running at a 7:1 ratio. Using Zack's Research I pulled a quick list of the top 100 most highly valued companies using next years earnings based on current market prices. I have also included the expected growth rates of earnings for this year and next as well and have highlighted some of the more commonly discussed stocks such as Amazon and Netflix.
The issue for investors, as always, is when these lofty expectations eventually meet up with reality. With the economy already very far along this current expansionary cycle, with earnings as a percent of GDP at an all-time high, one only has to wonder when something potentially goes awry. We have seen in the past, with companies like Apple, just how nasty the reversions can be when the "street" becomes disillusioned by reality. Sometimes, it is good idea to leave "the dance" a little early.