SHARE
Download Report
MSCI ACWI performance by historical 5-year earnings growth quintile. Data based on rolling 5-year returns for periods from 12/31/97 to 12/31/23.
Source: Jennison, FactSet. Average median annualized returns of stocks over rolling five-year periods, ranked by 5-year historical earnings growth quintiles (1=highest, 5=lowest). Quintiles are rebalanced quarterly. Past performance does not guarantee future results.
Total Return
Quintiles
17.0%
13.5%
9.9%
5.1%
-1.4%
Low Earnings Growth
High Earnings Growth
MSCI ACWI companies that generated the highest earnings growth have also led market performance for more than 25 years.
Download Report
For illustrative purposes only. Source: Jennison
Quintile 1
Quintile 2
build a portfolio of stocks based on companies with the highest consensus earnings growth forecasts.
This might suggest a strategy for long-term growth investing:
Download Report
21%
Year 5
Year 4
Year 3
Year 2
Year 1
MSCI ACWI and S&P 500 Index consensus earnings estimates of companies in quintiles 1 and 2 compared to realized earnings growth five years later.
Data from 06/30/05 to 12/31/23. Source: Jennison, FactSet. Past performance does not guarantee future results.
But a small fraction of these companies—less than 21%— have historically lived up to consensus expectations.
Download Report
This can be an opportunity for skilled active investors, who can identify long-term growth companies overlooked by the market.
Finding Tomorrow’s Growth Is an Active Challenge
Download Report
MSCI ACWI performance by historical 5-year earnings growth quintile. Data based on rolling 5-year returns for periods from 12/31/97 to 12/31/23.
Source: Jennison, FactSet. Average median annualized returns of stocks over rolling five-year periods, ranked by 5-year historical earnings growth quintiles (1=highest, 5=lowest). Quintiles are rebalanced quarterly. Past performance does not guarantee future results.
Total Return
Quintiles
17.0%
13.5%
9.9%
5.1%
-1.4%
Low Earnings Growth
High Earnings Growth
MSCI ACWI companies that generated the highest earnings growth have also led market performance for more than 25 years.
Download Report
For illustrative purposes only. Source: Jennison
Quintile 1
Quintile 2
build a portfolio of stocks based on companies with the highest consensus earnings growth forecasts.
This might suggest a strategy for long-term growth investing:
Download Report
21%
Year 5
Year 4
Year 3
Year 2
Year 1
MSCI ACWI and S&P 500 Index consensus earnings estimates of companies in quintiles 1 and 2 compared to realized earnings growth five years later.
Data from 06/30/05 to 12/31/23. Source: Jennison, FactSet. Past performance does not guarantee future results.
But a small fraction of these companies—less than 21%— have historically lived up to consensus expectations.
Download Report
This can be an opportunity for skilled active investors, who can identify long-term growth companies overlooked by the market.
Finding Tomorrow’s Growth Is an Active Challenge
Download Report
This can be an opportunity for skilled active investors, who can identify long-term growth companies overlooked by the market.
MSCI ACWI and S&P 500 Index consensus earnings estimates of companies in quintiles 1 and 2 compared to realized earnings growth five years later.
Data from 06/30/05 to 12/31/23. Source: Jennison, FactSet. Past performance does not guarantee future results.
21%
Year 5
Year 4
Year 3
Year 2
Year 1
Download Report
But a small fraction of these companies—less than 21%—have historically lived up to consensus earnings growth expectations.
Quintile 1
Quintile 2
For illustrative purposes only. Source: Jennison
Download Report
Build a portfolio of stocks based on companies with the highest consensus earnings growth forecasts.
This might suggest a strategy for long-term growth investing:
Download Report
MSCI ACWI performance by historical 5-year earnings growth quintile. Data based on rolling 5-year returns for periods from 12/31/97 to 12/31/23.
Source: Jennison, FactSet. Average median annualized returns of stocks over rolling five-year periods, ranked by 5-year historical earnings growth quintiles (1=highest, 5=lowest). Quintiles are rebalanced quarterly. Past performance does not guarantee future results.
Total Return
Quintiles
17.0%
13.5%
9.9%
5.1%
-1.4%
Low Earnings Growth
High Earnings Growth
MSCI ACWI companies that generated the highest earnings growth have also led market performance for more than 25 years.
Finding Tomorrow’s Growth Is an Active Challenge