Consensus estimates for 2017 seem overly optimistic; a single-digit gain in 2017 EPS seems more plausible.
For most sectors, the likelihood of adverse ESG events and their potential financial impacts evolve through a lifecycle. ESG lifecycles determine the time it takes for a sustainability issue to become relevant to a sector as well as the magnitude of the financial impact. We believe the ability to anticipate ESG lifecycles can enhance the investment decision-making process.
US markets moving away from antibiotics; our thesis remains intact. In our October 5, 2015, report Antibiotics and Animal Health: Value-Chain Implications in the US, we posited that consumer demand could push food supply chain companies to phase out antibiotics beyond the level required by FDA guidelines. We are seeing this play out as a… Read more »
Increasing automation will change the composition of the US workforce. Women face greater risk of job loss due to computerization, and “lower risk” jobs typically dominated by women pay less than low risk male-dominated jobs.
We maintain a cautious sector strategy, with most sectors experiencing earnings estimate reductions. Our regional strategy is also selective.
We are pleased to share a recent video interview with Blackrock’s Michelle Edkins and Cornerstone’s John Wilson in which we discuss the value of the “Shareholder Alignment Frontier TM (SAF).” The SAF is a tool inside Cornerstone’s proprietary framework which was specifically developed to help companies make the business case for improved stakeholder relationships through shareholder engagement thus building value for the long term
A sharp drop in 2016 estimates; 2017 estimates look too high; some stock markets look to be at precarious levels.
Cornerstone Capital Group submitted comments to the Securities and Exchange Commission (SEC) in response to its concept release “Business and Financial Disclosure Required by Regulation S-K.” Given our firm’s commitment to transparency and collaboration, we share those comments here.