Debt quencher microsoft drivers#
Debt quencher microsoft driver#

This need is becoming more acute as labor costs and security concerns grow, and it’s unlikely to be derailed by an economic slowdown. Companies around the world and across sectors are migrating data to the cloud. But some business trends are more resilient to a slowdown, especially those that benefit from long-term secular growth trends with long runways.Ĭonsider the cloud in the technology sector.

Debt quencher microsoft driver#

And China’s role as a driver of global economic growth is in being challenged amid COVID-19-related shutdowns.

Investors can’t depend on cyclical growth these days.

Debt quencher microsoft drivers#

To find those with solid earnings prospects and attractive valuations, here’s what active investors should look for.įind Companies with Their Own Growth Drivers

However, the gulf between share declines and earnings estimates suggests that select companies have been unfairly punished in the recent volatility. And rising interest rates will pressure multiples of higher-growth stocks. In the consumer-discretionary sector, the delta was –19.6%.īut aren’t valuations in growthy sectors still high? We agree that sectors such as technology and consumer discretionary aren’t especially cheap at 23.4x and 20.4x price/forward earnings, respectively, at the end of April. For example, the MSCI World Information Technology Index fell by 21.3%, while earnings estimate revisions for the sector advanced by 3.5%, representing a –24.8% difference between the two ( Display). Yet our research indicates that in some cases, sharp declines have dramatically exceeded the change in consensus earnings estimates. Shares in many sectors have been hit hard. Given the fragility of the post-pandemic world economy, fears are mounting that efforts to combat inflation could lead to a GDP growth slowdown, stagflation or worse. Russia’s invasion of Ukraine has added oil to the inflationary fire and most central banks are tightening monetary policy to quench the flames. In this environment, investors in growth stocks must identify companies with the right features to overcome headwinds to earnings.Įquity markets are coping with multiple challenges. With the world facing inflationary and geopolitical hurdles, economic growth is poised to slow.