GSTHTEVG Revenue Growth Basket
Building methods：
The Revenue Growth Basket is a special type of security portfolio, which is simply a mixture of revenue and growth securities to form a portfolio, which we call a basket. Revenue Growth Basket attempt to achieve some equilibrium between basic revenue and capital growth, so they are also called equilibrium portfolios. The equilibrium of the two can be obtained by two combinations: one is to balance the revenue securities and growth securities in the portfolio; The other is to choose a portfolio of securities that offer both revenue and growth potential. Investors in such portfolios are often willing to defer the underlying return in order to gain future returns.
Our Revenue Growth basket consists of 50 S&P 500 stocks with the highest expected 2022 sales growth based on consensus estimates. This basket focuses on companies positioned to use top-line revenue generation to drive bottom-line earnings.
Performance:
S&P500’s performance
S&P 500 P/E Ratio is at a current level of 22.89, down from 24.09 last quarter and down from 30.99 one year ago. This is a change of -4.97% from last quarter and -26.13% from one year ago.
Revenue Growth Basket is shown here.
Constituents:
The largest component of revenue growth basket is Info tech(information technology) accounting for 28 percent.
According to the discussion in our group, in our opinion, the principle of profitability of income-growth securities portfolio means to achieve a higher investment rate of return as far as possible on the premise of conforming to the principle of safety. The pursuit of profit is the direct goal of investment. Only when the income-growth portfolio conforms to this goal can the investment maintain and increase value.
In recent years, the information technology industry is in the early stage of the industry life cycle development, is a new sunrise industry. This category may make investors optimistic about its future development prospects, expectations of high growth in the future, and its share price will gradually rise. There may be fluctuations on the way, but the products and services of the relevant enterprises have been accepted by the majority of consumers, sales revenue and profits begin to grow, new investment opportunities continue to emerge, and the stock price will show a continuous growth trend. Coupled with the relevant national policy support of the industry, especially the sunrise industry, want to compare the traditional industry operation cycle is much longer trend is more stable.
As a result, investors will be happy to enter the information technology sector, because revenue growth basket seeks to maximize fundamental returns, and rising stock prices will inevitably lead to high returns for investors.