U.S. value picks scarce, Beutel manager says

Glenn Fortin's holdings include leading health-care companies.

Sonita Horvitch 1 March, 2017 | 6:00PM
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Glenn Fortin, vice-president and U.S. equity specialist at Beutel Goodman & Co. Ltd., says that the powerful year-end rally in the U.S. equity market has made for slim pickings for value investors.

This spurt, he says, helped propel the market to a strong showing over the last 12 months to the end of January. Over this period, the S&P 500 Index produced a high total return of 20.04%. This compares with the total return for calendar 2016 of 11.96%, reflecting a weak start to 2016. Turning to the valuation on this index, it recently traded at a price/earnings multiple on a trailing earnings basis of 25 times, and 18 times on the basis of forward earnings estimates.

"The U.S. equity market is expensive by historic standards," says Fortin, and it is tough to add new positions to the U.S. equity portfolio. "At Beutel Goodman, we are essentially bottom-up stock pickers looking for great businesses that trade below their intrinsic value."

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Amdocs Ltd76.23 USD0.37
American Express Co167.49 USD2.58Rating
Ameriprise Financial Inc259.13 USD2.22Rating
AmerisourceBergen Corp122.09 USD0.49Rating
Eli Lilly and Co228.30 USD-0.81Rating
JPMorgan Chase & Co155.91 USD1.92Rating
NortonLifeLock Inc24.94 USD-0.16Rating
Truist Financial Corp54.74 USD1.99Rating

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Sonita Horvitch

Sonita Horvitch  

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