New research shows that stocks that are profitable and profitable in the short term are likely to be safe for next year, even though the economy is not expected to recover.
The new research, which comes from a group of investors, found that stocks with an earnings per share (EPS) over 20% in the fourth quarter are much more likely to outperform the broader market than those with EPS less than 15%.
The study found that while stocks with EPS of 20% or more are much less likely to perform well than those that have EPS under 20%, they are much easier to profit from.
For example, if you own a company with an EPS of $2 billion, you are likely more likely than your peers to profit by selling their shares and buying back stock.
But if your EPS is $1 billion, your chances of profit are almost zero.
The report also found that companies with EPS over 20%, which has a higher risk tolerance, are likely safer for Christmas than those whose EPS is less than 10%.
This suggests that the stock market will return to its healthy levels in coming weeks, despite the economy slowing.
“As the economy rebounds, stock prices will continue to rise,” said Michael C. Lee, CEO of the investment advisory firm Morningstar.
“The market has always seen higher risk in stocks that have an earnings-per-share (EPD) over 25%.
However, that risk has been reduced to a level that will make stocks safer for the coming year.”
The report found that the largest U.S. stocks have a high EPD of 25%, followed by big tech stocks with a lower EPD at 23% and telecoms stocks with 20% EPD.
These stocks are more expensive to buy, but offer a lot of value for their owners.
According to the report, the largest stocks with earnings of more than $10 billion are more likely at the end of the year to outpermark their peers than the average stock.
These include Berkshire Hathaway, the world’s largest conglomerate with a total market value of $8.7 trillion.
The S&P 500 is worth $12.5 trillion.
The Dow Jones Industrial Average is up 5.6% in 2017, but the S&P 500 has gained 0.5%.