U.S. value picks scarce, Beutel manager says

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

Sonita Horvitch 1 March, 2017 | 6:00PM

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."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Amdocs Ltd59.00 USD2.15
American Express Co93.23 USD2.94
Ameriprise Financial Inc148.58 USD3.69
AmerisourceBergen Corp97.05 USD0.68
BB&T Corp35.20 USD4.73
Eli Lilly and Co163.36 USD-1.86
JPMorgan Chase & Co96.27 USD5.47
Symantec Corp20.30 USD1.10

About Author

Sonita Horvitch

Sonita Horvitch  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies