$Walt Disney(DIS)$ Earnings: Disney's PE is 133.9, about 4.5 times higher than the S&P 500 average as a whole. Growth: Disney's forward earnings multiple of 36.1 is still more than 50% higher than the S&P 500's, making Disney look overvalued. Disney's forward PE ratio is also more than 50% higher than the average multiple of its communication services sector peers, which are averaging a 21.5 forward earnings multiple. Yet when it comes to evaluating a stock, earnings aren't everything. The growth rate is also critical for companies that are rapidly building their bottom lines. The price-to-earnings-to-growth ratio (PEG) is a good way to incorporate growth rates into the evaluation process. The S&P 500's overall PEG is curre

Typically, a beat in earnings will drive a stock price up after the market opens. But realistically, it's not uncommon to see a stock's price fall after beating earnings.An interesting case to study is the brilliant Q2 and Q3 (2021) earnings results from $Apple(AAPL)$. The superb earnings were not as well-received by investors. Despite the strong quarterly results $Apple(AAPL)$.If you are an $Apple(AAPL)$investor who wondered after a remarkable Q2 and Q3 earnings report, why the value of your stock was going down rather than up...The possible reasons:1. Warning that chip supply constraints could impact iPhones and iPads will weigh on the short-term outlook.

The S&P 500 Index is a stock Index of 500 publicly traded companies in the United States. The stock index is created and maintained by Standard & Poor's.All companies covered by the S&P 500 are listed on major U.S. exchanges, such as the New York Stock Exchange and Nasdaq. The S&P 500 contains more companies than the Dow, so risk is more diversified and reflects broader market changes.Top 10 S&P 500 holdings: Apple, Microsoft, Amazon, Facebook, ExxonMobil, Johnson & Johnson, Berkshire Hathaway, JPMORGAN Chase, ALPHABET INC A, ALPHABET INC C (Parent company of Google) Are these companies familiar? Most of them are fortune 500 companies. So by investing in the S&P 500, you're indirectly owning these great companies.The stocks that make up the S&P 500 inde

The price to book ratio, also called the P/B or market to book ratio, is a financial valuation tool used to evaluate whether the stock a company is over or undervalued by comparing the price of all outstanding shares with the net assets of the company. In other words, it's a calculation that measures the difference between the book value and the total share price of the company.A high price to book ratio indicates that a stock is expensive, while a low ratio indicates that it is cheap.So-called value stocks often have a low price to book ratio, which indicates that you can buy the stock for a low price relative to the value of its assets.Calculation of P/B Ratio:Let's calculate the market to book ratio for ABC company.At the end of 2020, ABC stock was trading for $418 dollars per share, wi

The Consumer Price Index (CPI) is a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care. Inflation is the decline of a given currency's purchasing power over time; or, alternatively, a general rise in prices. So CPI is the most widely used measure of inflation.What happened recently?U.S. consumer prices overall rose 0.4% in September, pushing the y-o-y gain to 5.4%. CPI increased slightly more than expected in September as food and energy price rises offset declines in used cars ."Food and energy are more variable, but that's where the problem is," said Bob Doll, chief investment officer at Crossmark Global Investments. "Hopefully, we start solving our supply shortage problem.”The International Mon

Most traders have heard about Dow theory and higher highs and lower lows. This article is a quick recap of this very important trading topic.Highs and lows are major reference points for traders. The reason for this is their close link to the trend definition in chart analysis:1. Higher highs + higher lows define an upward trend.2. Lower highs +lower lows define a downward trend.Many traders pay attention to the progress of these points. Especially in daily charts they are regarded as key points. If the market price succeeds in surpassing yesterday's high, the market is bullish. This is especially true if there is an upward trend on the daily chart, as well. Vice versa, if the market price reverses below yesterday's low, the market is bearish, particularly when complemented by a downtrend

$Alibaba(BABA)$Alibaba, as a business, is at a pivotal moment. Its management had reassured investors back in April saying that there won’t be any material change in their business due to the regulatory rulings. Yet, they had acknowledged in August that they were still studying the impact of these regulatory rulings.We are in the process of studying the regulatory requirements, evaluating the potential impacts on our relevant businesses, and we will respond positively with actions.This discrepancy raises the possibility that Alibaba management’s reassurance may have merely been an educated guess at the time and its business might actually deteriorate in the months to come. This piles on to a myriad of other risk factors surrounding Alibaba. Therefore

$Facebook(FB)$is planning to change its company name next week to reflect its focus on building the metaverse, reported by The Verge.Over the years, the $960 billion market cap giant has been pouring tons of resources to build up its VR/AR arm, in the hope to become the leader of this growing economy. Facebook already has more than 10,000 employees building consumer hardware like AR glasses that Zuckerberg believes will eventually be as ubiquitous as smartphones.The metaverse is "going to be a big focus, and I think that this is just going to be a big part of the next chapter for the way that the internet evolves after the mobile internet," Zuckerberg told The Verge's Casey Newton this summer. "And I think it's going to be the next big chapter for our

Keep perspective: Downturns are normal1. On average since 1926, stocks have dipped into bear market territory every 6 years with losses averaging almost 40%.2. But while market downturns may be unsettling, history shows stocks have recovered and delivered long-term gains.Get a plan you can live with – through market ups and downs1. Your mix of stocks, bonds, and short-term investments will determine your potential returns, but also the likely swings in your portfolio.2. Pick an investment mix that aligns with your goals, timeframe, and financial situation, and you can stick with despite market volatility.Focus on time in the market – not trying to time the market1. It can be tempting to try to sell out of stocks to avoid downturns, but it’s hard to time it right.2. If you sell and are stil

The moving average (MA) is a simple technical analysis tool that smooths out price data by creating a constantly updated average price. The average is taken over a specific period of time, like 10 days, 20 minutes, 30 weeks or any time period the trader chooses. There are advantages to using a moving average in your trading, as well as options on what type of moving average to use. Moving average strategies are also popular and can be tailored to any time frame, suiting both long-term investors and short-term traders.Key Takeaways1. A moving average (MA) is a widely used technical indicator that smooths out price trends by filtering out the "noise" from random short-term price fluctuations.2. Moving averages can be constructed in several different ways, and employ different numbers of days