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Fairness Market: The popular international locations, sectors and shares in keeping with Fairness GPS

The independent research bureau’s equity rating has become more attractive after September’s share price decline and easing of long-term interest rates.

Independent research firm Equity GPS, led by Gilles Bazy-Sire and Julien Vannier, systematically ranks global equities from a database with over thirty years of history. It assigns each company and each market a “rating” based on valuation and earnings prospects.

The first rating refers to the “price” of the stock relative to its historical valuation ratios. The second relates to the company’s earnings momentum, which is calculated from the consensus of analysts’ quantitative forecasts and then compared to their historical levels and the earnings momentum of the market.

The final stock market attractiveness score is the average of both valuation and earnings momentum scores. The closer the value is to 10, the more attractive the stock is considered. The database is updated daily.

Stock exchanges are becoming attractive again

The overall rating of global equity markets has improved from 3.3 out of 10 to 5.9 out of 10 since our last reading on September 6th, thanks to the general price decline and some easing in long-term interest rates. But “market sentiment” switched from “neutral” to “negative” and back to “neutral” again.

The rating for the United States has risen from 2.4 to 3.3 out of 10 in two months, with sentiment changing from negative to neutral. The Eurozone’s also improved to 5.2 out of 10 from 3.5, with sentiment shifting from negative to neutral.

China’s rating rose further to 9.3 out of 10 from 8.8, but sentiment remains ‘negative’. Japan’s rating also rises from 3.8 to 5.7 out of 10 (sentiment from negative to neutral). Switzerland’s remains weak at 2.5 out of 10 (but sentiment has shifted from positive to neutral).

India’s rating rose (from 5.2 to 8.2 out of 10) with sentiment deteriorating from positive to neutral, then back to positive. Brazil’s rating rose to 9.9 out of 10 from 8.2, with sentiment remaining neutral.

Russia moves up a bit from 0 to 1.3 out of 10 and a sentiment that remains negative. In emerging markets, Latin America (9.8 out of 10) improved its score, as did Eastern Europe (9.5 out of 10).

Highly rated energy and health

The best performing sectors are Energy (9 out of 10), Health Care (7.1 out of 10), Financials (5.8) and Consumer Staples (7.1). On the other hand, utilities (3.5 out of 10), real estate (3.2 out of 10), and information technology (3.4 out of 10) have low ratings.

In France, the best results are obtained by Catering International Services (9.9 out of 10), Renault (9.4 out of 10), Ruby (9.4 out of 10), Publicis Groupe (9.4 out of 10), Lanson (9.1 out of 10), EssilorLuxottica (8.9 out of 10), Bic (8.8 out of 10), Unibail Rodamco Westfield (8.8 out of 10), Beneteau (8.7 out of 10), Mersen (8.7 out of 10).

Among the unattractive grades, the rating of which is less than 3 out of 10, we find Vetoquinol, amundi, Akwell, Aubay, somfy, Virbac, Lumibirdother technologies, Big, Euronext.

In the US, the Internet stars’ ratings remain low despite the fall in prices: Microsoft (3.4 out of 10), Amazon (4.1 out of 10), Apple (2.6 out of 10), Alphabet (3.7 out of 10). Only Meta Platforms (5.7 out of 10) gets a rating above 5.

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