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James Li
James Li
Articles (764)  | Author's Website |

Value Screeners Identify Opportunities for 2nd Quarter

A look at global market valuations and value screener record trends

April 11, 2019 | About:

In light of several political events, which include Brexit and ongoing trade negotiations between the U.S. and China, investors can look at value screener records to identify opportunities for the second quarter.

U.S. market slips on geopolitical concerns, company earnings

Despite trading at an intraday high of 26,219.46 Thursday morning, the Dow Jones Industrial Average closed at 26,143.05, down 14.11 points from Wednesday’s close of 26,157.16 and approximately seven points lower than the five-month high of 26,150 set on Nov. 8, 2018. Top Warren Buffett (Trades, Portfolio) holding Apple Inc. (NASDAQ:AAPL) contributed to the decline, down 0.83% from the previous close.

1902293942.png

The U.S. market rose at the opening bell on improving trade talks between the U.S. and China. CNBC columnist Fred Imbert said the Wall Street Journal reported China agreed to “open its cloud-computing sector to foreign companies.” Despite this, investors also weighed in on news regarding the delay of Brexit: According to CNBC, the U.K. government and leaders of the European Union agreed to a “flexible extension” of Brexit to Oct. 31, provided the U.K. attends the European Parliament elections in late May.

U.S. market stays significantly overvalued while global markets remain undervalued

Buffett’s favorite market indicator stood at 142.4%, approximately 3.2% higher from April 1’s reading of 139.2%. Based on the current market valuations, the U.S. market is expected to return -2.1% per year over the next eight years.

1555014336639.png

On the other hand, the U.K. and China's markets remain undervalued, with expected returns of 8.2% and 26.3%.

1555014368318.png

Value screeners identify opportunities

Table 1 details the value screener record as of April 11.

Screener

USA

Canada

UK

Europe

Asia

Oceania

Latin America

Africa

India

Graham Net-Net

246

58

58

263

613

9

8

16

41

Undervalued Predictable

63

6

41

124

64

6

50

6

12

Buffett-Munger

33

4

27

99

92

0

30

3

44

Peter Lynch PE

29

1

16

43

56

0

5

4

5

Peter Lynch PS

116

6

50

166

80

6

33

24

39

Peter Lynch PB

162

24

72

227

104

8

45

26

61

Lynch p2ebitda

216

9

63

272

111

7

30

19

50

Hist Low PS

31

1

14

44

39

0

17

6

26

Hist Low PB

57

2

27

78

43

2

31

10

25

High Div Yield

59

7

9

94

43

15

25

6

4

Table 1

As we observe in Table 1, the Asia region still has over 600 Benjamin Graham net-nets, suggesting possible market undervaluation.

Premium members have access to all our value screens, including the All-in-One Screener. Other key features include the Aggregated Portfolio of Gurus and GuruFocus Real-time Picks.

Disclosure: No positions.

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About the author:

James Li
I am an editorial assistant and researcher at GuruFocus. I have a Master's in Finance from SMU, and I enjoy writing reports on financial trends and investor portfolios. Follow me on Twitter at @JamesLiGuru!

Visit James Li's Website


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