To raise the long-term growth rate, Mr Brown believes that he will have to do two things.
Independence shares are down 4.4% in the past year, but its long-term growth rate is a solid 28%.
Then they narrow the list of candidates to the ones with price-to-earnings ratios at half the long-term growth rate.
Attracting only 1% more people per quarter will not fuel the long-term growth rate of 21.9% that analysts expect.
Valuation compared to its projected five-year growth rate is also modest: Limited's PEG ratio (price-to-earnings ratio divided by long-term growth rate of 15%) is 0.96.
The long-term growth rate of earnings per share on the stockmarket has lagged behind that of American GDP because many of the fastest-growing companies are not quoted.
Mr Greenspan is placing a lot of weight on the recent increase in America's productivity growth, which has helped offset faster wage growth, and may well have raised the economy's long-term growth rate.
Yokosawa and Oberweis look for companies with accelerating earnings growth (at least 30% a year), a price-to-earnings ratio no more than twice the long-term growth rate, and a defensible competitive advantage in a growing market.
So politicians should eschew policies that reduce the long-term growth rate, such as protectionism or higher taxes, and focus instead on measures that boost the growth potential, such as more flexible labour markets and other productivity-enhancing reforms.
Carnival trades at a forward PE multiple4 of 16, with a forecast long-term growth rate of around 16% per year.5 This is an attractive trade off, in my opinion, particularly given the great dynamics of an industry riding the powerful, long-term currents of mass affluence and aging.
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Since the U.S. Department of Commerce began maintaining economic data in 1947, the long-term average growth rate in non-residential fixed investment has been roughly 4.16 percent.
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But he goes further than just believing that America's long-term trend growth rate is, say, 2-3% a year rather than 4-5%.
Coach also gets high marks from my Lynch-inspired strategy, in part because of its solid 17.1% long-term EPS growth rate (based on an average of the three-, four-, and five-year growth rates).
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That number is paltry compared to the average U.S. annual growth rate of 2.8 percent since 1973 and is below the 2.5 percent long-term economic growth rate typically used by financial markets to value businesses.
The figure is found by dividing the forward price-to-earnings ratio by the company's long-term earnings growth rate.
Stated more clearly, their current PE ratio is approximately the same as their expected long-term earnings growth rate.
Moreover, the consensus analyst long-term EPS growth rate projection is 12% for PSMT, versus a 14.5% industry median.
Right now we believe that investors are factoring in a sub-10% long-term EPS growth rate for the company.
Blackstone has an expected long-term earnings growth rate of 19.6% and pays a dividend that yields 2.5% annually.
The premium is warranted given a higher long-term earnings growth rate of 29.0%, compared with the industry average 12.7%.
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But the economy is supposed to come booming out of the downturns, averaging back out to the long-term American growth rate.
The premium ratios are warranted given its higher long-term earnings growth rate of 17.9%, compared with the peer group average of 11.7%.
Given its expected long-term earnings growth rate of 29.0%, this stock looks like it would fit well into the portfolio of a growth seeking investor.
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Assuming that the long-term potential growth rate is around 3%, the economy would have to grow at 4% for two years to eliminate the gap.
Given that our economy grew at 3.87% during the Bretton Woods period, America should target for a long-term GDP growth rate of no less than 3.5%.
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With its dividend return and an expected long-term FFO growth rate of around 7.2%, Taubman Centers appears to be a promising pick for investors seeking both growth and income.
Also, the long-term EPS growth rate of 36.68%, based on the average of the three- and five-year historical EPS growth rates, exceeds the 15% minimum that the strategy requires.
With its dividend return and an expected long-term FFO growth rate of around 8.1%, Digital Realty appears to be a promising pick for investors seeking both growth and income.
With a decent dividend yield and an expected long-term earnings growth rate of 9.2%, American Campus Communities looks like a promising pick for investors seeking both growth and income.
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We do show British-American Tobacco (nyse: BTI - news - people ), which sells for just 10 times expected earnings, and has a 10.4% expected long-term earnings growth rate.
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