Global Index Briefing: World Energy Sector MSCI October 2, 18 Dr. Ed Yardeni 16-972-768 eyardeni@ Joe Abbott 72-497-06 jabbott@ Please visit our sites at www. blog. thinking outside the box
Table Of Contents Table Of Contents World Energy Sector MSCI Stock Price Index 1 Earnings 2 Revenues & Margins Valuation 4 October 2, 18 / Global Index Briefing: World Energy Sector MSCI www.
00 0 Figure 1. Stock Price Index WORLD ENERGY SECTOR MSCI STOCK PRICE INDEX (ratio scale) 00 0 0 /2 0 0 9 96 97 98 99 00 01 02 0 04 0 06 07 08 09 11 12 1 14 1 16 17 18 19 0-day moving average. Source: MSCI. 0 7 6 Figure 2. WORLD ENERGY SECTOR MSCI, FORWARD EARNINGS, & VALUATION World Energy Sector MSCI Index /2/18 Blue Angels Implied Price Index* 04/24/1 7 6 2 2 07 08 09 11 12 1 14 1 16 17 18 19 * Implied price index calculated using forward earnings times forward P/Es. Monthly through December 0, weekly thereafter. Source: MSCI and Thomson Reuters I/B/E/S. Page 1 / October 2, 18 / Global Index Briefing: World Energy Sector MSCI www.
4 8 1 Figure. Earnings WORLD ENERGY SECTOR MSCI EARNINGS PER SHARE (analysts average forecasts, ratio scale) 4 8 1 24 24 /4 17 18 19 17 Consensus Forecasts Annual estimates Forward earnings* 9 96 97 98 99 00 01 02 0 04 0 06 07 08 09 11 12 1 14 1 16 17 18 19 * Time-weighted average of consensus estimates for current year and next year. Monthly through December 0, then weekly. 40 0 Figure 4. WORLD ENERGY SECTOR MSCI INDEX NET EARNINGS REVISIONS* 40 0 0 Sep 0 - - - - -0-40 -0 NERI Jul 14.81 Aug 8.89 Sep 6.1 9 96 97 98 99 00 01 02 0 04 0 06 07 08 09 11 12 1 14 1 16 17 18 19-0 -40-0 * Three-month moving average of the number of forward earnings estimates up less number of estimates down, expressed as a percentage of the total number of forward earnings estimates. Page 2 / October 2, 18 / Global Index Briefing: World Energy Sector MSCI www.
00 Figure. Revenues & Margins WORLD ENERGY SECTOR MSCI REVENUES PER SHARE (analysts average forecasts, ratio scale) 00 0 0 /4 18 19 0 0 Consensus Forecasts Annual estimates Forward revenues* 04 0 06 07 08 09 11 12 1 14 1 16 17 18 19 * Time-weighted average of consensus estimates for current year and next year. Monthly through December 0, then weekly. 9 Figure 6. WORLD ENERGY SECTOR MSCI PROFIT MARGIN (using analysts average earnings and revenues forecasts) 9 8 8 7 7 6 /4 6 18 19 4 Consensus Forecasts Annual estimates Forward profit margin* (6.0) 4 2 04 0 06 07 08 09 11 12 1 14 1 16 17 18 19 2 * Time-weighted average of the consensus estimates for current year and next year. Monthly through December 0, weekly thereafter. Page / October 2, 18 / Global Index Briefing: World Energy Sector MSCI www.
0 Figure 7. Valuation WORLD ENERGY SECTOR MSCI VALUATION MULTIPLE* 0 Forward P/E (1.1) 1 1 /4 9 96 97 98 99 00 01 02 0 04 0 06 07 08 09 11 12 1 14 1 16 17 18 19 * Price divided by forward consensus expected earnings per share. Monthly data through December 0, weekly thereafter. 2.00 Figure 8. WORLD ENERGY SECTOR MSCI RELATIVE VALUATION* 2.00 1.7 1.7 1.0 Relative P/E (0.88) 1.0 1. 1. 1.00 1.00 /4.7.7.0 9 96 97 98 99 00 01 02 0 04 0 06 07 08 09 11 12 1 14 1 16 17 18 19.0 * Forward P/E of index relative to All Country World MSCI forward P/E. Monthly data through December 0, weekly thereafter. Page 4 / October 2, 18 / Global Index Briefing: World Energy Sector MSCI www.
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