Thursday, May 19, 2016

Stocks with low earnings volatility per unit of growth

The following tweet from Eddy Elfenbein ( prompted me to run a quick analysis on all the stocks in the S&P 500:

The criteria:
  • Companies currently in the S&P 500
  • Positive earnings in every year for the past 21 years
  • Calculate (simple) average 20 year annual EPS growth rate
  • Calculate standard deviation of 20 years annual EPS growth rate
  • Coefficient of variation = Standard Deviation / Mean Return (the lower the better)

Here, ranked by coefficient of variation, are the S&P 500 stocks with the lowest risk (standard deviation) per unit of growth.  Enjoy!

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phcap said...

Would you mind posting this as en Excel sheet?

Tia, very interesting.

Spike said...

phcap: Please email me direct (email above on the right sidebar) to discuss.