July 22, 2016

Global Earnings Synthesis: Consensus 2016 Estimates Have Been Falling; 2017 Estimates Look Too High

A sharp drop in 2016 estimates; 2017 estimates look too high; some stock markets look to be at precarious levels.

July 22, 2016

Our Letter to the SEC on Sustainability Disclosures

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.

July 21, 2016

Tracking our Thesis on Food Safety Opportunities: A Look at Neogen

As we discussed in our July 2016 report Food Safety: In a State of Transformation, the global food safety testing market is expanding. Our optimistic view on growth in food safety testing is supported by Neogen’s fourth quarter earnings release. Neogen is flagged in our report for having high exposure to the food safety theme.

July 20, 2016

A Voice in the Boardroom: Practical Guidance for Voting Proxies

“A Voice in the Boardroom” is written for organizations and individuals who want to use their voice as shareholders to influence companies, but are not sure how to get started. It is meant primarily for asset owners — endowments, foundations, family offices, individuals or others — who are long-term stewards of capital on behalf of themselves and others.

July 12, 2016

Food Safety: In a State of Transformation

The food industry is undergoing a transformation as it addresses food safety risks in an increasingly global, complex supply chain. A number of highly publicized cases of foodborne illnesses and product recalls have occurred in recent years; these events highlight vulnerabilities in the food safety chain that present opportunities and risks for investors.

July 6, 2016

Sector and Regional Strategy: Monthly Update

Executive Summary Sector implications of Brexit fallout. Uncertainty likely to prevail globally, at least until U.S. presidential election. Major corporate and consumer spending decisions potentially on hold, a negative for Information Technology, Industrials, and Consumer Discretionary (downgraded to Neutral). Low rates continue to pressure Financials. Regional strategy. Russia and Australia still rank at top of… Read more »

June 24, 2016

Brexit Fallout: Global Uncertainty to Weigh on Multiples

Uncertainty has increased materially in key regions of the World. In the U.K., Brexit uncertainty could drag on for a few years. Globally, the next big uncertainty surrounds the U.S. presidential election, although that issue will be clarified in a few months.

June 2, 2016

Regional and Sector Strategy: Monthly Update

Executive Summary Upgrade U.S. to Overweight from Neutral. Earnings estimate revisions turned sharply positive, adding to other favorable fundamentals including margins, share buybacks. Information Technology: Still Neutral; Earnings Outlook Remains Unfavorable. We downgraded Information Technology to Neutral last month reflecting, in part, negative earnings estimate revision trends and a deceleration in expected earnings momentum. Both… Read more »

May 26, 2016

An Atypical Analysis of Industry Risks

Most investors focus on tangible income statement and balance sheet items, but intangible factors can be material too.

May 2, 2016

Regional and Sector Strategy: Monthly Update

Our earnings momentum metric has been refined. In addition, we have also introduced a methodology for weighting ESG factors in sectors and regions. These modifications have resulted in an unusually large number of changes in recommendations.