QQQ - Embedded Expectations Analysis - 2018 03 28

The QQQ currently trades at levels relative to UAFRS-based (Uniform) Earnings not seen since 2003, with a 24.4x Uniform (Fwd V/E'). However, even at these high valuations, market expectations are low relative to recent performance, suggesting reasons to believe companies in the QQQ could exceed market expectations Nasdaq companies have seen Uniform ROA plateau around 36%-40% levels the past five years, as they have focused on accelerating Uniform Asset growth to consistent double-digit levels. ...