Table of contents
The Bottom Line for December 2012 3
Screening the market for sectors and sub-sectors with best growth and value 4
Where to focus within mega-cap stocks: Screening the top 100 on Growth & Value 8
Our report card: GARP, Growth, Value and Unattractive Screens 13
Where to find Sales and EPS growth in 2013 16
Where to find Sales and EPS growth in 2014 18
Implied earnings growth: How is the market valuing the sectors? 22
How we calculate implied growth: Inverting the Dividend Discount Model (DDM) 24
The prospective equity risk premium and implied earnings growth 25
Style-based mutual fund holdings analysis: Core, Growth and Value 26
Sector capitalization of the S&P 500 has shifted significantly over time 36
. . . But has not always correlated with the proportionate contribution to net income 37
Sector Analysis 39
Appendix A: Sector, sub-sector and company valuation 60
Appendix B: Sector screens for style managers 84
Disclosures 92