The financially sound companies whose attractively priced stocks make up the Barron’s 400 Index have larger sector profit margins than those in the Standard & Poor’s 500. This is the second Diary entry on profit margins. The first (B400 Companies Have Larger Profit Margins Than Those in S&P 500) looked at the overall indexes and [...]John A. Prestbo
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Barron’s 400 Index companies regularly surpass S&P 500 companies in earnings growth. One of the main reasons is that the profit margins of the financially strong Barron’s 400 companies are running nearly 20% larger than those in the S&P 500. Profit margin is a measure of how well companies convert top-line revenue into bottom-line [...]John A. Prestbo