Zhitong Finance and Economics learned that Bank of America analysts pointed out in a strategy snippet report that some ** have high specific risks, and the fundamentals may improve significantly. Using the S&P 500**, analysts calculated the percentage change in returns interpreted by the index over the past 15 years, or r-squared. They consider residual earnings to be "specific". They then used the median special risk as a breakpoint. "We divide the S&P 500 into two categories: special (above the median company-specific risk) and macro (below the median company-specific risk," the analysts wrote. We find that long-short stock picking strategies based on earnings growth, return on equity, and analysts' expectations based on EPS revisions generate more alpha in individual areas and less alpha in macro areas. ”
Consumer discretionary, technology and healthcare companies are likely to be more productive in sectors with more specific risks, while sectors such as financials, utilities or commodities are likely to be more driven by macro cycles of interest rates, inflation and other economic growth trends, analysts said.
Here are the 11 constituents of the S&P 500 that have the highest exceptional risk over the past year:
Communication Services
at&t(t.us) special risk factor - 095
verizon communications(vz.us)——0.94
t-mobile(tmus.us)——0.93
Consumer discretionary
Ulta Beauty, Inc. (ULTA.)us)——0.94
o 'Reilly Motors (Orly.)us)——0.92
Domino's Pizza Company (DPZ.)us)——0.90
Consumer staples
General Mills Company (GIS.)us)——1
Campbell Soup Company (CPB.)us)——1
SMAK Corporation (SJM.)us)——0.99
Energy
Philip 66 (PSX.)us)——0.95
ExxonMobil Corporation (XOM.)us)——0.93
Marathon Petroleum Corporation (MPC.)us)——0.92
Finance
Progressive Insurance (PGR.)us)——0.99
CBOE Global Markets Inc. (CBOE) – 097
Chicago Mercantile Exchange Group Inc. Class A (CME.)us)——0.96
Health care
Humus)——1
McKeson, Mckus)——0.99
AbbVie Corporation (abbv.)us)——0.99
Industrial
Northrop Grumman & Co. (NOCus)——0.97
Waste Management Corporation of America (WM.)us)——0.96
Lockheed Martin (LMT.)us)——0.95
Information Technology
Juniper Networks, Inc. (JNPR.)us)——0.95
First Solar (FSLR.)us)——0.88
Fly Tower Information (FTNT.)us)——0.86
Materials:
CF Industrial Holdings (CF.)us)——0.96
Newman Mining (NEM.)us)——0.94
FMC Corporation (FMC.)us)——0.86
Real estate
extra space storage(exr.us)——0.83
realty income(o.us)——0.82
Public Storage (PSA.)us)——0.81
Utilities
United Edison Company (ed.)us)——0.95
Aman Ryan (AEE.)us)——0.93
CMS Energy Inc. (CMS.)us)——0.92