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Double check me on this statistic, will yooz? Thanks

edited April 2017 in Off-Topic
Ok, X-Raying my portfolio at Morningstar. "Projected Earnings Per Share Growth" over the next 5 years = 10.78%, where the SP 500 standard is 1. (Or does the constant 1 just apply to SP 500 YIELD, in the next column?)

So, the thing is telling me that, compared to SP 500, my portf is projected to grow earnings at 4.83%. That's 4.83 times better than SP 500? What did I do right?


  • Last night I, too, noticed this number was out of line. I looked for an explanation in the x-Ray info but found nothing. BTW, you are doing much better than I.
  • I checked a couple different portfolios and it seems the S&P projected earnings for the next 5 years is consistent at 2.23%. That means if your portfolio is projected to grow earnings at 10.78% then it is 4.83 times what the S&P is expected to do. The S&P growth rate for earnings seems really low but M*'s rate for the S&P is consistent between your portfolio and mine.

    I also checked VOO and on the Holdings page for the portfolio they have the same long-term earnings % at 2.23. In M*'s glossary of terms here's what they say: "Projected earnings growth is an estimate of a company's expected long-term growth in earnings, derived from all polled analysts' estimates. When reported for a mutual fund, it shows the weighted average of the projected growth in earnings for each stock in the fund's portfolio." It seems that means the number is derived by probably averaging all of the polled analysts for each of the 500 stocks and then weighting the expected growth rate for each stock based on it's weight in the index. Not exactly encouraging, huh?
  • Well, thank you. That DOES sound awfully clunky. Average of 500 stocks projected has to be pretty fluid. Or should I say, unreliable? Anyhow, thanks for responding! I guess this thread is done...
  • After reading the above comments I entered a S&P 500 Index mutual fund ticker (SPIAX) and Xray says the fund is 3.93 times the projected earnings growth of the S&P 500 Index. Another Morningstar snafu. While, I think Xray does a good job of dissecting a fund at times they have glitches. It is apparent this is another one of them.
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