Stock Market Internals Earnings Momentum, Small/Mid/Large Caps, Growth/Value/Cyclicals, and Additional Factors
Additional Factors
From the lows on February 11th to the end of March, the S&P 500 rallied nearly 14%, propelling the index into positive territory for the YTD. Our Equal Weighed Average sprung back to life in the past two months; the largest handful of firms are no longer driving performance.
Earnings Momentum
The second month of Q4 2015 earnings reports registered an Up/Down Ratio of 1.12—up from the post- financial crisis low of 1.11 last quarter. With 51% of the observations in February, the “Up” count edged out the “Down,” but barely.
Small Cap vs Mid Cap vs Large Cap
The Ratio of Ratios bounced off last month’s multi-year low (4% Small Cap discount) but still sits firmly below its Small Cap median, which is a premium of 4%.
Growth vs Value vs Cyclicals
Small Cap Growth stocks have gotten off to a rotten start in 2016—down almost 12%. On a relative basis, the segment has also been lagging Small Cap Value—underperforming by 9% since last July.
Additional Factors
February turned out to be a month of trend reversals.
Earnings Momentum
Median YOY revenue growth figures for Q4 look awfully similar to the past few quarters—many market cap segments and sectors barely cling to positive readings. Market action is starting to take some of the fluff out of the LTM Price to Sales ratio.
Small Cap vs Mid Cap vs Large Cap
Small Cap underperformance in January helped push our Ratio of Ratios into discount territory for the first time since the end of 2008.
Growth vs Value vs Cyclicals
Despite Growth lagging severely in the two smaller market cap segments, Large Cap Growth, the darling of 2015, was the best performer in the brutal month of January.
Additional Factors
Although the volatility measures couldn’t match last August, the S&P 500 still managed to reach a new contemporary low of 1812 on January 20th. Our Equal Weighted Average has had just one monthly win since its relative strength peak in March of 2015.
Earnings Momentum
The third month of Q3 2015 earnings reports registered an Up/Down Ratio of 1.12. With only 52% of firms reporting higher earnings, the lack of earnings growth isn’t confined to just the Energy and Materials sectors.
Small Cap vs Mid Cap vs Large Cap
Our Ratio of Ratios crashed through its historical median of 4% in December and barely clings to its premium. This ends a period of almost seven years above the median.
Growth vs Value vs Cyclicals
In each of our three market cap breakdowns, Growth prevailed over Value, but Large Cap Growth was the only segment with a positive return, at a strong +9%. Growth stocks have experienced impressive outperformance since the middle of 2014.
Additional Factors
Our Equal Weighted Average for the index continued its streak of underperformance—losing to the Cap Weighted measure in nine of the last 10 months of 2015. The largest 25 firms were certainly the bright spot for the year—up 7.5% on average.
Earnings Momentum
The second month of Q3 2015 earnings reports registered an Up/Down Ratio of 1.11. On its own, the month of November was particularly weak with a stand-alone Up/Down Ratio of 0.97.
Small Cap vs Mid Cap vs Large Cap
Our Ratio of Ratios Small Cap premium bounced off its historical median as Large Caps underperformed in November.
Growth vs Value vs Cyclicals
Despite Large Cap Growth lagging in November, it has been a much better year for Growth stocks. All three Value segments remain in negative territory YTD.
Additional Factors
After three dramatic months, the S&P 500 held in a narrower range in November. Big Tech names like Microsoft (+3%), Google (+4%), and Amazon (+6%) outperformed once again and our Cap Weighted measurement continued to roll—it has beat the Equal Weighted Average in eight of the last nine months.
Earnings Momentum
Up/Down Earnings: Worst Start In Six Years
Small Cap vs Mid Cap vs Large Cap
Small Cap Premium Drops To 4%
Growth vs Value vs Cyclicals
Growth Edges Out Value As Stocks Rebound
Perception for the Professional
March 2026 Issue
Featured Articles
Sector Navigator
March 2026 Issue
