In spite of higher wages and costs driving up inflation gauges, some American companies are reporting their best profits in years, according to an article in The Wall Street Journal.…
Tag: profit margins
When Better Profit Margins Aren't Better
A recent article by McKinsey & Company argues that there are times when cost cutting and higher prices can hinder a company’s growth and harm its value. Offering several examples,…
Negative Implications of Falling Corporate Profit Margins
In his MarketWatch column, Mark Hulbert explains the distressing news buried by much of the recent positive reporting on the upward revision of GDP earlier this month. “Though the government’s…
Hussman: Margin Argument Doesn't Hold Water
Could historically high profit margins be the result of more foreign profits, making the high margins a new reality rather than anomaly? Fund manager John Hussman says the data says…
Fisher: Time To Think About Margins
With the bull market around its halfway point, in his estimation, Kenneth Fisher is focusing on “big, fat stocks” — that is, large-caps with fat gross profit margins. “It works…
Montier Not Finding Much Safety
James Montier and GMO are known for their conservative, cautious approach — a mindset that has helped the firm often recognize market and economic problems well ahead of others. So,…
Sonders on Why Those High Profit Margins Aren't So High
In recent years, there’s been a lot of talk about how profit margins have reached unsustainable levels and will revert to their historic mean, which would have negative consequences for…
Hussman: Profit Margins Skewing Valuations
John Hussman, whose funds had strong long-term track records before getting hit hard the past few years, says those who contend stocks are cheap are way off base. “I can’t…
Grantham Gloomy, But Not Running From Equities
GMO’s Jeremy Grantham sounds quite gloomy in his latest quarterly letter, though he advises a “near normal” allocation to equities and says high-quality U.S. stocks are “relatively cheap”. Grantham says…
Grantham, Doll Offer Different Takes On Margins
Are historically high profit margins for U.S. firms sustainable, or will they come bouncing back to the mean — and throw a wrench into the stock market in the process?…