investment style guide - yardeni research · 2020-07-01 · investment style guide yardeni...

Investment Style Guide

Yardeni Research, Inc.

July 24, 2020

Dr. Edward Yardeni516-972-7683

[email protected]

Joe Abbott732-497-5306

[email protected]

Please visit our sites atwww.yardeni.comblog.yardeni.com

thinking outside the box

Table Of Contents Table Of ContentsTable Of Contents

July 24, 2020 / Investment Style Guide www.yardeni.com


Index Price Performance: 2020 1Index Price Performance: 2019 2Index Price Performance: 2018 3Index Price Performance: 2017 4Index Price Performance: 2016 5Index Price Performance: 2015 6Index Price Performance: Bull Market of 2020-? 7Index Price Performance: Bull Market of 2009-2020 8S&P 500 Growth/Value Relative Price Performance 9S&P 500 Pure G/V Relative Price Performance 10Growth/Value Relative Forward Revenues & Earnings 11Market Cap: S&P Earnings & Valuation 12Market Cap: S&P 500, 400, 600 13-14Market Cap: Russell 1000 vs. 2000 15Growth vs. Value: Revenue Squiggles 16Growth vs. Value: Earnings Squiggles 17Growth vs. Value: Profit Margins 18Growth vs. Value: Earnings Growth 19Growth vs. Value: S&P Valuation 20-21Growth vs. Value: Market Cap Shares 22Growth vs. Value: Net Revenue Revisions 23Growth vs. Value: Net Earnings Revisions 24Growth vs. Value: Revenue Growth 25Growth vs. Value: Earnings Growth 26Russell Valuation SmallCap, Growth, Value 27Valuation: SMidCap’s Relative to LargeCap’s 28Fwd Revenues & Earnings: SMidCap’s vs. LargeCap’s 29Fwd Growth: Blended vs. Pure Style 30Valuation: Blended vs. Pure Style 31LTEG & Fwd Profit Margin: Blended vs. Pure Style 32

Jan Feb Mar Apr May Jun Jul Aug Sept2020

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10LARGECAP & SMIDCAP PERFORMANCE: 2020(percent change ytd)

S&P 500 LargeCap (-0.5)S&P 400 MidCap (-10.3)S&P 600 SmallCap (-16.6)Russell 1000 LargeCap (0.0)Russell 2000 SmallCap (-12.0)

Latest data thru: 07/24/20

Source: Frank Russell Company, Haver Analytics, and Standard & Poor’s Corporation.

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Figure 1.

Jan Feb Mar Apr May Jun Jul Aug Sept2020

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20GROWTH & VALUE PERFORMANCE: 2020(percent change ytd)

S&P 500 LargeCap Growth (11.2)S&P 500 LargeCap Value (-13.6)S&P 400 MidCap Growth (-1.9)S&P 400 MidCap Value (-19.4)S&P 600 SmallCap Growth (-9.8)S&P 600 SmallCap Value (-23.7)



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Figure 2.

Index Price Performance: 2020

Page 1 / July 24, 2020 / Investment Style Guide www.yardeni.com


Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec2019

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S&P 500 LargeCap (28.9)S&P 400 MidCap (24.1)S&P 600 SmallCap (20.9)Russell 1000 LargeCap (28.9)Russell 2000 SmallCap (23.7)



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Figure 3.


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S&P 500 LargeCap Growth (29.1) S&P 500 LargeCap Value (28.6)S&P 400 MidCap Growth (24.5) S&P 400 MidCap Value (23.6)S&P 600 SmallCap Growth (19.6) S&P 600 SmallCap Value (22.2)



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Figure 4.





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S&P 500 LargeCap (-6.2)S&P 400 MidCap (-12.5)S&P 600 SmallCap (-9.8)Russell 1000 LargeCap (-6.6)Russell 2000 SmallCap (-12.2)



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Figure 5.


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S&P 500 LargeCap Growth (-1.4)S&P 500 LargeCap Value (-11.3)S&P 400 MidCap Growth (-11.5)S&P 400 MidCap Value (-13.6)S&P 600 SmallCap Growth (-5.0)S&P 600 SmallCap Value (-14.2)



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Figure 6.





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Figure 7.


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S&P 500 LargeCap Growth (25.4)S&P 500 LargeCap Value (12.6)S&P 400 MidCap Growth (18.4)S&P 400 MidCap Value (10.2)S&P 600 SmallCap Growth (13.5)S&P 600 SmallCap Value (9.8)


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Figure 8.





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Figure 9.


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Figure 10.





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S&P 500 LargeCap (-0.7)S&P 400 MidCap (-3.7)S&P 600 SmallCap (-3.4)Russell 1000 LargeCap (-1.1)Russell 2000 SmallCap (-5.7)


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Figure 11.


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S&P 500 LargeCap Growth (3.8)S&P 500 LargeCap Value (-5.6)S&P 400 MidCap Growth (0.8)S&P 400 MidCap Value (-8.4)S&P 600 SmallCap Growth (1.5)S&P 600 SmallCap Value (-8.1)


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Figure 12.




Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2020

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70LARGECAP & SMIDCAP PRICE INDEXES DURING BULL MARKET OF 2020-?(percent change from March 23, 2020 to ?)



Source: Standard & Poor’s.

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Figure 13.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec2020

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70GROWTH & VALUE PRICE INDEXES DURING BULL MARKET OF 2020-?(percent change from March 23, 2020 to ?




yardeni.com

Figure 14.

Index Price Performance: Bull Market of 2020-?



2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

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550LARGECAP & SMIDCAP PRICE INDEXES DURING BULL MARKET OF 2009-2020(percent change from March 9, 2009 to February 19, 2020)




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Figure 15.

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

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600GROWTH & VALUE PRICE INDEXES DURING BULL MARKET OF 2009-2020(percent change from March 9, 2009 to February 19, 2020)




yardeni.com

Figure 16.

Index Price Performance: Bull Market of 2009-2020



97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.30

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7/24

S&P 500 GROWTH & VALUE RELATIVE TO S&P 500

Relative to S&P 500*GrowthValue

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* Rising (falling) line indicates that the index is outperforming (underperforming) the S&P 500.Source: Standard & Poor’s and Haver Analytics.

Figure 17.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.8

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STYLE RATIO: S&P 500 GROWTH DIVIDED BY VALUE(daily)

yardeni.com

Source: Standard & Poor’s and Haver Analytics.

Figure 18.

S&P 500 Growth/Value Relative Price Performance



95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.5

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7/24

7/24

RELATIVE PRICE INDEX: S&P 500 PURE GROWTH & PURE VALUE(relative to S&P 500)

Pure Growth relative to S&P 500Pure Value relative to S&P 500

Rising line indicates thatthe index is outperforming the S&P 500

yardeni.com

Source: Standard & Poor’s Corporation and Haver Analytics.

Figure 19.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.75

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RELATIVE PRICE INDEX: S&P 500 PURE GROWTH & PURE VALUE(Pure Growth price index relative to Pure Value price index)

Rising line indicates thatPure Growth is outperforming Pure Value

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Figure 20.

S&P 500 Pure G/V Relative Price Performance



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021.35

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RELATIVE FORWARD REVENUES: S&P 500 GROWTH & VALUE INDEX

Rising line indicates thatGrowth is outperforming Value

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Source: I/B/E/S data by Refinitiv.

Figure 21.

1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023.6

.8

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1.2

1.4

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.6

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7/16

RELATIVE FORWARD EARNINGS: S&P 500 GROWTH DIVIDED BY VALUE INDEX(ratio)

yardeni.com


Figure 22.

Growth/Value Relative Forward Revenues & Earnings

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202250

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S&P FORWARD EARNINGS PER SHARE(weekly, Jan 1999=100)

Forward Earnings*S&P 500 LargeCap (283.7)S&P 400 MidCap (418.4)S&P 600 SmallCap (355.8)

* 52-week forward consensus expected operating earnings per share. Time-weighted average of the current year’s and next year’s consensus forecast.Source: I/B/E/S data by Refinitiv.

yardeni.com

Figure 23.

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20228

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P/E RATIOS FOR S&P INDEXES*(weekly)

S&P 500 LargeCap (22.0)S&P 400 MidCap (20.5)S&P 600 SmallCap (23.7)

* Price divided by 52-week forward consensus expected operating earnings per share.Source: I/B/E/S data by Refinitiv.

yardeni.com

Figure 24.

Market Cap: S&P Earnings & Valuation



1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022100

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7/24S&P INDEXES(weekly)

S&P 500 LargeCap (3215.6)S&P 400 MidCap (1849.9)S&P 600 SmallCap (851.6)


yardeni.com

Figure 25.

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-50

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S&P INDEXES(weekly, yearly percent change)

S&P 500 LargeCap (6.3)S&P 400 MidCap (-6.7)S&P 600 SmallCap (-11.5)


yardeni.com

Figure 26.

Market Cap: S&P 500, 400, 600



Figure 23.

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21-60

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S&P 500 LARGECAP vs. S&P 400 MIDCAP(weekly, yearly percent change)

S&P 500 LargeCap (6.3)S&P 400 MidCap (-6.7)

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21-40

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S&P 500 vs. S&P 400 SPREAD(yearly percent change, basis points)

S&P 500 Outperforms 400

S&P 500 Underperforms 400

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21-60

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S&P 500 LARGECAP vs. S&P 600 SMALLCAP(yearly percent change) S&P 500 LargeCap (6.3)

S&P 600 SmallCap (-11.5)

96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21-50

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S&P 500 vs. S&P 600 SPREAD(yearly percent change, basis points)

S&P 500 Outperforms 600

S&P 500 Underperforms 600


yardeni.com

Market Cap: S&P 500, 400, 600



Figure 24.

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22100

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2100

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21007/17RUSSELL 1000 vs. RUSSELL 2000

(weekly, ratio scale)

Russell 1000 LargeCap (1789.0)Russell 2000 SmallCap (1473.3)

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-60

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RUSSELL 1000 vs. RUSSELL 2000(yearly percent change)

Russell 1000 LargeCap (8.5)Russell 2000 SmallCap (-4.8)

90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-50

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RUSSELL 1000 vs. RUSSELL 2000 SPREAD(yearly percent change, basis points)

Russell 1000Outperforms 2000

Russell 1000Underperforms 2000

Source: Frank Russell Company and Haver Analytics.

yardeni.com

Market Cap: Russell 1000 vs. 2000



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021300

350

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60021

7/1619

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* Time-weighted average of consensus estimates for current year and next year. Monthly through December 2005, then weekly.Source: I/B/E/S data by Refinitiv.

S&P 500 CITIGROUP GROWTH REVENUES PER SHARE(analysts’ average forecasts, ratio scale)

Consensus ForecastsAnnual estimates

Forward revenues*

Figure 25.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021500

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S&P 500 CITIGROUP VALUE REVENUES PER SHARE(analysts’ average forecasts, ratio scale)


Forward revenues*

Figure 26.

Growth vs. Value: Revenue Squiggles



95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 2215

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S&P 500 CITIGROUP GROWTH INDEX OPERATING EPS(analysts’ average forecasts, ratio scale)


Forward earnings*

Figure 27.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 2222

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S&P 500 CITIGROUP VALUE INDEX OPERATING EPS(analysts’ average forecasts, ratio scale)


Forward earnings*

Figure 28.

Growth vs. Value: Earnings Squiggles



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20218

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(using analysts’ average earnings and revenues forecasts)

* Time-weighted average of the consensus estimates for current year and next year. Monthly through December 2005, weekly thereafter.Source: I/B/E/S data by Refinitiv.

S&P 500 CITIGROUP GROWTH PROJECTED PROFIT MARGIN


Forward profit margin* (15.1)

Figure 29.

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20215

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(using analysts’ average earnings and revenues forecasts)

* Time-weighted average of the consensus estimates for current year and next year. Monthly through December 2005, weekly thereafter.Source: I/B/E/S data by Refinitiv.

S&P 500 CITIGROUP VALUE PROJECTED PROFIT MARGIN


Forward profit margin* (8.1)

Figure 30.

Growth vs. Value: Profit Margins



Figure 31.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-20

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S&P 500 CITIGROUP GROWTH vs. VALUESTEG*

Growth (10.7)Value (0.4)

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 220

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LTEG*Growth (12.6)Value (4.9)

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-20

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GrowthSTEG* (10.7)LTEG* (12.6)

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-30

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ValueSTEG* (0.4)LTEG* (4.9)

* STEG: 12-month forward consensus expected earnings growth. LTEG: 5-year forward consensus expected earnings growth.


yardeni.com

Growth vs. Value: Earnings Growth



95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 225

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FORWARD P/E RATIOS FOR S&P 500 GROWTH & VALUE*(daily)


* Price divided by 12-month (52-week) forward consensus expected operating earnings per share. Monthly data through December 2005, then daily.Source: I/B/E/S data by Refinitiv.

yardeni.com

Figure 32.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.75

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RELATIVE P/E: S&P 500 GROWTH & VALUE*(Growth P/E relative to Value P/E)

* Price divided by 12-month (52-week) forward consensus expected operating earnings per share. Monthly data through December 2005, weekly thereafter.Source: I/B/E/S data by Refinitiv.

yardeni.com

Figure 33.

Growth vs. Value: S&P Valuation



95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.50

.75

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7/16

PEG RATIOS FOR S&P 500 CITIGROUP GROWTH vs. VALUE*


* Using 5-year forward consensus expected earnings growth and price divided by 12-month (52-week) forward consensus expected operating earnings per share.Monthly data through December 2005, weekly thereafter.Source: I/B/E/S data by Refinitiv.

yardeni.com

Figure 34.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22.25

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7/16

RELATIVE PEG: S&P 500 GROWTH & VALUE*(Growth PEG relative to Value PEG)


yardeni.com

Figure 35.

Growth vs. Value: S&P Valuation



95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 2230

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S&P 500 CITIGROUP GROWTH INDEX(percent)

S&P 500 Growth’s Shares Of:S&P 500 Market Cap (59.7)S&P 500 Earnings* (47.9)

* Using consensus 12-month forward earnings forecasts.Source: I/B/E/S data by Refinitiv.

yardeni.com

Figure 36.

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S&P 500 CITIGROUP VALUE INDEX(percent)

Capitalization Share (40.3)Earnings Share* (52.1)

* Using consensus 12-month forward earnings forecasts.Source: I/B/E/S data by Refinitiv.

yardeni.com

Figure 37.

Growth vs. Value: Market Cap Shares



2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-50

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NERI May-34.19 Jun-26.21 Jul -7.15

Jul

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* Three-month moving average of the number of forward earnings estimates up less number of estimates down, expressed as a percentageof the total number of forward earnings estimates.Source: I/B/E/S data by Refinitiv.

S&P 500 CITIGROUP GROWTH INDEX NET REVENUE REVISIONS*

Figure 38.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-50

-40

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-10

0

10

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-50

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NERI May-37.10 Jun-29.85 Jul-11.00

Jul

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S&P 500 CITIGROUP VALUE INDEX NET REVENUE REVISIONS*

Figure 39.

Growth vs. Value: Net Revenue Revisions



95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-50

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NERI May-35.00 Jun-27.92 Jul -9.35

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S&P 500 CITIGROUP GROWTH INDEX NET EARNINGS REVISIONS*

Figure 40.

95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22-50

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NERI May-38.98 Jun-32.51 Jul-13.54

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S&P 500 CITIGROUP VALUE INDEX NET EARNINGS REVISIONS*

Figure 41.

Growth vs. Value: Net Earnings Revisions



2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-20

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15 16

1718

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S&P 500 CITIGROUP GROWTH REVENUE GROWTH(analysts’ average forecasts, ratio scale)


Forward revenues*

2008 (9.6)2009 (-8.7)2010 (11.4)2011 (14.2)2012 (6.6)2013 (4.2)2014 (8.5)

2015 (5.1)2016 (4.9)2017 (9.1)2018 (11.2)2019 (5.9)2020 (-0.6)2021 (11.0)Fwrd (6.7)

Figure 42.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-10

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S&P 500 CITIGROUP VALUE REVENUE GROWTH(analysts’ average forecasts, ratio scale)


Forward revenues*

2008 (2.6)2009 (-5.9)2010 (7.7)2011 (7.4)2012 (-2.2)2013 (0.4)2014 (0.6)

2015 (-7.9)2016 (0.2)2017 (5.2)2018 (7.9)2019 (3.4)2020 (-7.2)2021 (7.2)Fwrd (1.1)

Figure 43.

Growth vs. Value: Revenue Growth



2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-30

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S&P 500 CITIGROUP GROWTH EARNINGS GROWTH(percent)


Forward revenues*

2008 (7.9)2009 (-12.6)2010 (29.1)2011 (20.5)2012 (11.8)2013 (9.1)2014 (14.5)

2015 (9.8)2016 (7.1)2017 (14.6)2018 (26.9)2019 (4.3)2020 (-10.3)2021 (25.0)Fwrd (10.7)

Figure 44.

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-40

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S&P 500 CITIGROUP VALUE EARNINGS GROWTH(percent)


Forward revenues*

2008 (-35.0)2009 (23.5)2010 (60.3)2011 (10.0)2012 (1.5)2013 (3.7)2014 (1.5)

2015 (-5.6)2016 (-3.3)2017 (8.6)2018 (21.7)2019 (-0.6)2020 (-31.9)2021 (33.6)Fwrd (0.4)

Figure 45.

Growth vs. Value: Earnings Growth



2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202210

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FORWARD P/E RATIOS FOR RUSSELL 2000*(weekly)

P/E capped at 60 due to extreme values.

Russell 2000 (47.2)Russell 2000 Growth (60.0)Russell 2000 Value (26.8)


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Figure 46.

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202210

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FORWARD P/E RATIOS FOR US SMALLCAP *

P/E capped at 35 due to extreme values.

Russell 2000 (35.0)S&P 600 SmallCap (23.7)


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Figure 47.

Russell Valuation SmallCap, Growth, Value



2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20228

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FORWARD P/E RATIOS FOR S&P STOCK PRICE INDEXES*(daily)

S&P Forward P/EsS&P 500 (22.0)S&P 400 (20.7)S&P 600 (23.8)

* Daily stock price index divided by 52-week forward consensus expected operating earnings per share.Source: Standard & Poor’s and I/B/E/S data by Refinitiv.

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Figure 48.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021.7

.8

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FORWARD P/E RATIO: S&P 500 RELATIVE TO S&P 400 and S&P 600*(daily)

S&P 500 relative to S&P 400 (1.063)S&P 500 relative to S&P 600 (0.924)

* Price divided by 52-week forward consensus expected operating earnings per share.Source: I/B/E/S data by Refinitiv.

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Figure 49.

Valuation: SMidCap’s Relative to LargeCap’s



2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 202150

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FORWARD REVENUES: S&P 500 RELATIVE TO S&P 400 and S&P 600*(weekly, indexed to 100 at beginning of data series on 1/15/2004)

S&P 500 relative to S&P 400S&P 500 relative to S&P 600

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Figure 50.

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202250

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FORWARD EARNINGS: S&P 500 RELATIVE TO S&P 400 and S&P 600*(weekly, indexed to 100 at beginning of data series on 1/21/1999)

S&P 500 relative to S&P 400S&P 500 relative to S&P 600

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Figure 51.

Fwd Revenues & Earnings: SMidCap’s vs. LargeCap’s



2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-15

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S&P 500 CITIGROUP GROWTH vs. VALUE REVENUE GROWTH

STRG*Growth (6.7)Value (1.1)Pure Growth (2.8)Pure Value (-0.3)

STRG: 12-month forward consensus expected revenue growth.Source: I/B/E/S data by Refinitiv.

Figure 52.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-40

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S&P 500 CITIGROUP GROWTH vs. VALUE EARNINGS GROWTHSTEG*

Growth (10.7)Value (0.4)Pure Growth (8.4)Pure Value (-7.1)

STEG: 12-month forward consensus expected earnings growth.Source: I/B/E/S data by Refinitiv.

Figure 53.

Fwd Growth: Blended vs. Pure Style



2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20220

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S&P 500 CITIGROUP GROWTH vs. VALUE FORWARD P/SALES

Growth (3.5)Value (1.4)Pure Growth (3.4)Pure Value (0.5)

* Price divided by forward consensus expected revenues per share.Source: I/B/E/S data by Refinitiv.

Figure 54.

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20220

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7/16S&P 500 CITIGROUP GROWTH vs. VALUE FORWARD P/E


* Price divided by forward consensus expected operating earnings per share.Source: I/B/E/S data by Refinitiv.

Figure 55.

Valuation: Blended vs. Pure Style



2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022-10

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S&P 500 CITIGROUP GROWTH vs. VALUE LTEGLTEG*


Figure 56.

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20210

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S&P 500 CITIGROUP GROWTH vs. VALUE FORWARD PROFIT MARGIN



Figure 57.

LTEG & Fwd Profit Margin: Blended vs. Pure Style



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