S&P Publishes Value "Judgments"

December 15, 2003 (PLANSPONSOR.com) - Standard & Poor's announced Friday the results of its semi-annual changes to several of its indexes, notably the designation of stocks as either "growth" or "value" within those gauges.

With respect to categorization of a stock as either “growth” or “value,” S&P noted that the discriminating attribute of each stock was its book-to-price ratio. Using this metric, each index is split into two mutually exclusive sets, each of which comprises roughly half of the index’s total market capitalization, according to S&P.

“Book” Look

Each S&P/Barra Value Index contains stocks with higher book-to-price ratios, whereas each S&P/Barra Growth Index includes stocks whose book-to-price ratios are lower. Like the parent indices from which they are derived, the growth and value indices are market capitalization-weighted, according to S&P.

Among S&P 500 companies, the following changes were reported:

Transferring from Growth to Value

  • Becton, Dickinson
  • BJ Services
  • Concord EFS Inc.
  • General Mills
  • Genzyme Corp.
  • Home Depot
  • ITT Industries, Inc.
  • Mattel, Inc.
  • MedImmune Inc.
    NVIDIA Corp.
  • Progressive Corp.
  • Univision Communications
  • Xerox Corp.

Transferring from Value to Growth

  • Agilent Technologies
  • Applied Materials
  • Autodesk, Inc.
  • Boeing Company
  • Cardinal Health, Inc.
  • Delphi Corporation
  • EMC Corp.
  • National Semiconductor
  • North Fork Bancorporation
  • Novell Inc.
  • Parametric Technology
  • Staples Inc.
  • Synovus Financial
  • Teradyne Inc.
  • Instruments                   

S&P noted that changes to the S&P 500/Barra Growth, S&P 500/Barra Value, S&P MidCap 400/Barra Growth, S&P MidCap 400/Barra Value, S&P SmallCap 600/Barra Growth, and S&P SmallCap 600/Barra Value indices would take effect after the close of trading on Friday, December 19, 2003.  

You can find more details on the changes in the other indices at http://www2.standardandpoors.com/spf/pdf/index/121203US.pdf