Fannie Mae: A Lesson in Risk and the Importance of Fiduciary Responsibility
Investing without a scientific understanding of risk exposes portfolios to unnecessary losses. According to ERS's Fiduciary Risk Rating, FNMA has always been unsuitable for fiduciaries to own.
Eli Lilly: Valuation Lessons from ERS’s ProfitMap.ai
On 8/30/2024, Eli Lilly’s (LLY) market cap was $864 billion, price $960, and $39 billion TTM revenues. Its P/S was 22. Advisors using ERS’s ProfitMap.ai could have quickly and easily seen “what must happen” for LLY’s price to rise.
Moderna’s Price Decline: ERS’s Data Scientists Predicted This Decline
Moderna’s price on August 9, 2021 was $484.47. Today, 1/13/2025, it traded as low as $32.03 - a loss of 93%. Equity Risk Sciences has 9 proprietary ratings. On August 9, 2021, all of ERS’s ratings were extremely negative.
Make A Quantum Leap In Your Investment Performance
Investment professionals have a fiduciary duty to analyze both the upside potential of a stock and its downside risks. And the most reliable method to fulfill this responsibility is by using data sciences, statistics and AI.
Questions About Apple
Has Apple become a stronger, less leveraged and more liquid company than it was 3 years ago? What are the primary concerns?
In Major Declines, Safer Stocks Fall Less and Recover Quicker
Market risks are concerning; America's top 10 firms command $21 trillion in market value. For conservative investors, what constitutes a reasonable P/E ratio? Many of today's equity funds have concentrated their investors' holdings in these richly valued stocks, which carry an average P/E of 35.
The Very Dirty Dozen – January 7, 2025
Equity Risk Sciences identified the "Very Dirty Dozen" – a group of 12 stocks with exceptionally high risk according to our proprietary risk ratings.
Fiduciary Risk Assessment
My goal is to help fiduciaries realize that their primary responsibility as a fiduciary is to protect their clients’ assets from significant losses AND clearly demonstrate that the only effective way to achieve and fulfill their responsibilities is by measuring and rating the probability of a stock falling and remaining low.
Decker Walked All Over Microsoft – 12/31/1999 to 12/31/2024
Several smaller companies outperformed Microsoft from 12/31/99 to 12/31/24. ERS identified these standout performers—Deckers Outdoor, Old Dominion Freight Line and CorVel—through its proprietary low-risk PRI™ (Price Risk Indicator) and FRR™ (Fiduciary Risk Rating) stock ratings. Deckers outperformed Microsoft 118-fold, while the other two stocks outperformed Microsoft by 32-fold and 5-fold, respectively.
Apple Report – Potential for Considerable Price Decline Caused by P/E Compression
Apple's current P/E ratio stands at 40. But what should it be? For Apple, the data suggests that a lower P/E ratio and slower revenue growth are the most likely scenarios. While no one can precisely predict these figures, the table offers a range of possibilities for your consideration.