Cornerstone Investment Partners

Differences in estimated EPS growth between traditional growth sectors and the rest of the S&P are expected to narrow over the next few quarters. We believe that suggests a potential opportunity for additional market breadth as investors get more comfortable with the relative growth profile of other names than those which have led the market recently.

Cornerstone uses our proprietary #FairValueModel to assess #valuation opportunities for companies across the market. Weekly, we compare values to the current prices of #stocks. We’re now publishing results for followers, and our #investment team is available for deeper insights.

Happy #LaborDay from Cornerstone Investment Partners!

Cornerstone is proud to announce that two of its strategies received "Top Gun" recognition from Informa Financial Intelligence’s PSN manager database for the 2nd quarter: -         Concentrated 30 (Large Cap Value) received 5-star and 6-star awards, recognizing top-10 3-year performance and 5-year information ratio results -         Opportunistic Small-Mid Cap Value (SMID Value) received 3-star, 4-star, and “Bull/Bear Masters” awards, recognizing 3-year performance and market capture statistics PSN Top Guns ranks products across 75 peer groups. This is a well-respected quarterly ranking and is widely used by institutional asset managers and investors. You can find our firm's award page here: https://lnkd.in/g2eZJXBX

Small business optimism has recovered to levels not seen in the last two years. That confidence suggests less concern over a near-term recession at the grassroots level and may drive continued stability in underlying economic factors.

Please find below our quarterly assessment of the impact on bank equity levels from marking-to-market securities held on their balance sheets. We are likely to start a Federal Reserve rate cutting cycle. In the absence of rising credit spreads, the valuations of these securities may start to improve. Cornerstone adjusts the valuations of banks we review for both the impact of these securities and excess credit-related exposure, and wrote a thought paper on the topic last year when concerns spiked, which can be found here (https://lnkd.in/gqcnVfnu).

Cornerstone uses our proprietary #FairValueModel to assess #valuation opportunities for companies across the market. Weekly, we compare values to the current prices of #stocks. We’re now publishing results for followers, and our #investment team is available for deeper insights.

The US continues to stand out versus peers, as sales and EPS growth levels remain stronger than other developed markets. 

Encouragingly, outside of a few companies experiencing idiosyncratic (often structural) pressure, publicly disclosed job cuts appear to have taken a back seat recently, suggesting corporate confidence.

One theme of the past year has been the divergence in outcomes and economic sentiment for those with different incomes. Even with rising wages on the whole, lower-income families have felt the impact of inflation more significantly, and it has been shown in consumer behavior and spending patterns. While this trend continues, this likely will impact companies with greater or lesser exposure to these population groups and remain a politically charged issue.