1.Ford and GM have Two of the Lowest P/E’s in S&P…..TSLA +41% YTD vs. F-GM Negative…..TSLA Trading at 271x Earnings.
Ford has the fifth-lowest price/earnings ratio in the S&P 500. The absolute lowest belongs to rival General Motors, which at $34, trades for under six times projected 2017 earnings. Barron’s has written favorably on GM, including in an article earlier this year (“GM Shares Could Drive 35% Higher,” Feb. 18), when GM traded around $37. http://www.barrons.com/articles/ford-shares-are-too-cheap-1492229293
1.Leading Sector in 2017 Tech Finishes Down 10 Days in a Row. XLK +8.29% YTD vs. S&P +4%
The Standard & Poor’s 500 Information Technology Index has finished lower 10 days in a row, only the fourth such streak since 1989, when daily data on the sector was first posted, according to Bespoke Investment Group. Barrons http://www.barrons.com/articles/stocks-slip-1-on-week-as-geopolitical-worries-grow-1492229480
1.15% Year Over Year GAAP Earnings Growth is Higher than All but Three Previous Bull Market Peaks.
FUNDAMENTAL Last year’s earnings rebound appears to be continuing in 2017. The 15% year/year growth in S&P 500 GAAP EPS is higher than at all but three previous bull market peaks and dividend growth remains above average. We are skeptical, however, that earnings will grow as fast as consensus suggests, as year/year comps become more difficult, earnings momentum will likely slow, leaving the market left with both elevated expectations and valuations. Ned Davis