While few stocks were spared this year’s slide, technology and other expensive growth stocks suffered the most. S&P 500 stocks, valuation versus performanceYEAR-TO-DATE PERFORMANCE YEAR-TO-DATE PERFORMANCE YEAR-TO-DATE PERFORMANCE YEAR-TO-DATE PERFORMANCE YEAR-TO-DATE PERFORMANCEThe value gauge, on the other hand, is dominated by stocks such as Berkshire Hathaway Inc.,+ 3.8% in 2022; Johnson & Johnson,up 3.4%; UnitedHealth Group Inc.,down 3.3%; and Exxon Mobil Corp.up 45%. If earnings fall, it makes stocks even more expensive at the same price levels. Analysts estimate the S&P 500 net profit margin will be 12.3% for the first quarter, above the five-year average of 11.2%. If earnings were to disappoint, it would make stock market valuations even more expensive than they already look, absent a further decline in share prices.

Source: Wall Street Journal May 14, 2022 07:27 UTC