The Cape Ratio Weekly is a newsletter devoted to the CAPE Ratio. The latest issue dated October 7 provides an immensely useful table giving company-wise lowest CAPE ratio values for S&P 500 (INDEXSP:.INX).
Another useful table provides CAPE by sector:
For value investors, this is excellent information because the CAPE Ratio provides a more dependable (and longer-term) picture of a company’s earnings growth.
Does Warren Buffett use the CAPE Ratio? Read our previous article here.
CAPE ratio changes in equities
This week’s changes are significant because J.C. Penney Company, Inc. (NYSE:JCP) assumed the lowest positive CAPE Ratio value spot, relegating Cliffs Natural Resources Inc (NYSE:CLF) and Citigroup Inc (NYSE:C) to second and third places respectively.
However, an equity issue and the increase in the number of shares, plus the impact of that on prices, helped J.C. Penney Company, Inc. (NYSE:JCP) achieve the lowest CAPE Ratio spot. Goldman Sachs Group Inc (NYSE:GS) recently lowered its PT on the stock from $14 to $10. The retailer also made some sweeping changes to its senior management but these left Citigroup In (NYSE:C) unimpressed, who rates the stock at a Sell and a 12-month price target of $7, saying, “CEO Mike Ullman has his work cut out for him, but we think he is listening to everyone voicing concerns, and acting with his team to drive topline in an overall challenging environment as consumers live out our C.H.E.A.P. thesis.” Yet marquee investors appear to be at odds – George Soros owns 19.9M shares of the struggling retailer, while Bill Ackman bailed out of his JCP investment.
Compared to last week, Hartford Financial Services Group Inc (NYSE:HIG) moved out of the top 25 list and was replaced by PG&E Corporation (NYSE:PCG). Goldman Sachs Group Inc (NYSE:GS) moved up a couple of rungs because of lower recent pricing.
Key changes in sectors: the Financial sector moves down a tad to below 20 because prices have fallen a bit while Transportation is up to 32.82.