Why Stock Valuation Hinges More on Returns Than Future Earnings
Growth stocks don’t generate the long-term returns that would justify their high multiples, according to the 2023 Jacobs Levy Center’s “Best Paper,” co-authored by Wharton’s Sean Myers.
Content: Article | Authors: Ricardo De la O, Sean Myers, Shankar Parameshwaran, Xiao Han | Source: Knowledge@Wharton | Subjects: Finance, Market/Investment
Looking back: Meet the new P/E normal, same as the old P/E normal
Weighted average and median P/E ratios rarely diverge significantly—and when they do, the gap soon closes.
Content: Article | Author: David Schwartz | Source: McKinsey Quarterly | Subjects: Finance, Market/Investment
People Have an Irrational Need to Complete ‘Sets’ of Things
People are irrationally motivated to complete arbitrary sets of tasks, donations, or purchases—and organizations can take advantage of that, according to new research by Kate Barasz, Leslie John, Elizabeth Keenan, and Michael Norton.
Content: Article | Authors: Carmen Nobel, Michael I. Norton | Source: Harvard Business School (HBS) Working Knowledge | Subjects: Customer Related, Market/Investment
The Product Manager vs. The Strategist
How the people behind the roles that shape your world think.
Editor’s Note: I fail to see the need for this distinction or the need (or even the desire) to separate how and what, but I still found the article to be an interesting read.
Content: Article | Author: Julia Mitelman | Source: Medium | Subjects: Management, Market/Investment, Strategy
Five Key Metrics You Need to Create a Customer-Centric Company
To ensure the customer-centric vision takes root, you need to establish clear metrics that are linked to the company’s strategic, operational, and financial goals. Those metrics will help with determining priorities and shifting the orientation of the company toward a more customer-centered business model. Ideally, the marketing team will work with the executive team to establish the metrics.
Once the metrics are selected, it is a … [ Read more ]
Content: Article | Author: Laura Patterson | Source: MarketingProfs | Subjects: Customer Related, Market/Investment
Nineteen (19!) Ideas for Growing Your Email List
What would you rather have, a big list with dismal conversion rates or a smaller list targeting a highly engaged audience? Thought so.
For a healthy opt-in email list, quality always trumps quantity, and here are 19 budget-friendly ways to get the list you want. What you’ll find here are a few new twists to familiar tactics, along with real results and examples, to help you … [ Read more ]
Content: Article | Author: Hunter Boyle | Source: MarketingProfs | Subject: Market/Investment
Customer Analytics: Cutting a New Path to Growth and High Performance
Customer-centricity is an increasingly important requirement for competitive advantage and, ultimately, high performance. As part of this, developing a robust customer analytics strategy has become vital to help identify the segments that matter, draw insights about behavior and point the way to process changes that will impact customer loyalty and profitability. Accenture discusses how some organizations have effectively done this and outlines four principles that … [ Read more ]
Content: Article | Source: Accenture | Subjects: IT / Technology / E-Business, Market/Investment
The Price Is Right: Optimizing Industrial Companies’ Pricing of Services
Too often, industrial companies are leaving cash on the table – and missing opportunities to cement customer loyalty and boost repeat sales of their equipment – because they base decisions about bundling and pricing their services on anecdotal information. We offer a systematic approach to examining markets, leading to a much more informed perspective on the opportunities and risks in bundling and pricing services.
Content: Article | Author: David Rickard | Source: Boston Consulting Group (BCG) | Subjects: Market/Investment, Pricing
Supersizing and Downsizing: The Impact of Changing Packaging and Portion Sizes on Food Consumption
When it comes to packaging, size matters. In a research paper, INSEAD Associate Professor of Marketing Pierre Chandon and co-author Nailya Ordabayeva, an INSEAD PhD student, found that changes in the shape of packaging or portions can have a big impact on our consumption patterns.
Content: Article | Authors: Nailya Ordabayeva, Pierre Chandon | Source: INSEAD Knowledge | Subject: Market/Investment
Email Marketing Disobedience: Six laws of proper e-Newsletter creation, and why you should ignore every one of them
Review the following six bromides from a recent how-to article phoned in by a reigning email-marketing magnate… and then read why you should ignore them.
Content: Article | Author: Gary Levitt | Source: MarketingProfs | Subject: Market/Investment
A Three-Step Product Commercialization Insurance Policy: How a GM Can Overcome the Odds
Bringing a new product to market is one of the most costly and risky activities that any GM faces.
Voice-of-the-customer research and stage gate reviews have improved the odds of achieving success. But do they go far enough?
Three important tasks are frequently overlooked even though they offer the ability to identify weak links early on.
So, how can you overcome the odds? Arm your team with a … [ Read more ]
Content: Article | Author: Michael Barr | Source: MarketingProfs | Subjects: Market Research, Market/Investment
Want (Your Product) to Look Good? Follow Something that Looks Bad
In marketing, context can be as critical as content. Recent research by Zakary Tormala and others finds that messages are perceived as more powerful when they are preceded by different messages that appear to have less substance or to be authored by someone with lesser credibility
Content: Article | Authors: Joshua Clarkson, Richard Petty, Zakary Tormala | Source: Stanford University | Subject: Market/Investment
7 Deadly Claims
Jeff Sexton at Future Now identifies and challenges seven common marketing claims, explaining why they are ineffective and offering ideas for making them persuasive.
1. Superior Customer Service
2. Easy to Use
3. Most Experienced
4. We’re #1
5. 100% Risk-Free
6. Cutting Edge
7. Best Value
Content: Article | Author: Jeff Sexton | Source: GrokDotCom | Subject: Market/Investment
Conversion Rate Optimization, Upside Down
Way too many conversion rate optimization projects are coming up empty. Companies feel they work too hard for too little return. Most conversion rate optimizations efforts are focused on pages and elements but don’t focus on the entire persuasion scenario. Perhaps and understanding of The Hierarchy of Optimization can help.
Content: Article | Author: Bryan Eisenberg | Source: ClickZ | Subjects: IT / Technology / E-Business, Market/Investment
To Guide or Not to Guide
An investigation shows that investors suffer when firms stop giving quarterly earnings guidance.
Content: Article | Authors: Baruch Lev, Jennifer Tucker, Joel F. Houston | Source: STERNbusiness (NYU) | Subjects: Finance, Market/Investment | Industries: Finance / Banking, Investing
What Happened to the Bull Market?
By the time NASDAQ reached its peak in the recent bull market, many financial commentators had begun to accept the idea that stock market valuations were no longer driven solely by the traditional economic factors: earnings growth, inflation, and interest rates. Instead, they suggested, new factors—such as structural changes in the economy, new rules of economics, and the value of intangible assets and brands—justified the … [ Read more ]
Content: Article | Authors: Tim Koller, Zane D. Williams | Source: McKinsey Quarterly | Subjects: Economics, Market/Investment | Industry: Investment Banking
Will Stock Prices Keep Falling? Look Again at the P/E Ratio
Many analysts argue that despite the carnage on Wall Street over the past year, stock prices are still high by historical standards. Is that true? Could stocks fall some more before they reach bottom? Wharton finance professor Jeremy Siegel, author of Stocks for the Long Run, suggests that benchmarks such as the price-to-earnings ratio present a more hopeful picture than many market observers believe.
Content: Article | Author: Jeremy Siegel | Source: Knowledge@Wharton | Subjects: Finance, Market/Investment | Industry: Investing
Risk and Return: Some New Evidence
The return on the market portfolio plays a central role in the capital asset pricing model (CAPM), the financial theory widely used by both academics and practitioners. However, the intertemporal properties of the stock market return are not yet fully understood. In particular, ther is an ongoing debate in the literature about the relationship between market risk and return and the extent to … [ Read more ]
Content: Article | Authors: Hui Guo, Robert Whitelaw | Source: Federal Reserve Bank of St. Louis | Subjects: Finance, Market/Investment | Industry: Investing
The Day the IPO Died
The stigma haunting startups that fail to go public can taint their credibility and force them to refocus. And those are the lucky ones.
Content: Article | Author: Anya Schiffrin | Source: The Standard | Subjects: Entrepreneurship, Market/Investment
Stock Prices and Fundamentals in a Production Economy
This paper by the Federal Reserve Board compares the predictions for the market value of firms from the Gordon growth model with those from a dynamic general equilibrium model of production. Special attention is focused on the prediction for movements in the market value of firms in response to a decline in the required return or an increase in the growth rate of the … [ Read more ]
Content: Article | Author: Michael T. Kiley | Source: Federal Reserve Board (FRB) | Subjects: Economics, Market/Investment | Industry: Investing