Publicação
How to improve quality investing
| Resumo: | In this article, we evaluate the relationship between quality investing combined with Economic Moat, ESG (Environmental, Social and Governance) and analyst opinions over the period 2014–2020 based on a data set comprising 803 US stocks. Performance is evaluated using several metrics (returns and alphas). Our results show that quality stocks measured by return on invested capital (ROIC) exhibit superior performance. The incorporation of competitive advantages allows a better discrimination among the classic high-quality strategies. Investment in stocks with quality and high ESG entails the payment of a premium but buying quality companies with Economic Moat makes up for this negative aspect. The results show how quality companies that have competitive advantages obtain a better future performance and are recognized by the market with a higher valuation. However, the markets may take time to recognize this value since the incorporation of the average Price-to-Price target (Analyst consensus) increases the future performance. JEL classification: G11; G14; G23 |
|---|---|
| Autores principais: | González, Luis Otero |
| Outros Autores: | Santomil, Pablo Durán; Vieito, João Paulo da Torre; Reboredo, Juan Carlos |
| Assunto: | Quality investing Economic Moat ESG Analyst forecast Performance |
| Ano: | 2025 |
| País: | Portugal |
| Tipo de documento: | artigo |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Instituto Politécnico de Bragança |
| Idioma: | inglês |
| Origem: | Biblioteca Digital do IPB |
| _version_ | 1867172878486601728 |
|---|---|
| author | González, Luis Otero |
| author2 | Santomil, Pablo Durán Vieito, João Paulo da Torre Reboredo, Juan Carlos |
| author2_role | author author author |
| author_facet | González, Luis Otero Santomil, Pablo Durán Vieito, João Paulo da Torre Reboredo, Juan Carlos |
| author_role | author |
| contributor_name_str_mv | Biblioteca Digital do IPB |
| country_str | PT |
| creators_json_txt | [{\"Person.name\":\"González, Luis Otero\"},{\"Person.name\":\"Santomil, Pablo Durán\"},{\"Person.name\":\"Vieito, João Paulo da Torre\"},{\"Person.name\":\"Reboredo, Juan Carlos\"}] |
| datacite.contributors.contributor.contributorName.fl_str_mv | Biblioteca Digital do IPB |
| datacite.creators.creator.creatorName.fl_str_mv | González, Luis Otero Santomil, Pablo Durán Vieito, João Paulo da Torre Reboredo, Juan Carlos |
| datacite.date.Accepted.fl_str_mv | 2025-01-01T00:00:00Z |
| datacite.date.available.fl_str_mv | 2025-07-15T14:29:42Z |
| datacite.date.embargoed.fl_str_mv | 2025-07-15T14:29:42Z |
| datacite.rights.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| datacite.subjects.subject.fl_str_mv | Quality investing Economic Moat ESG Analyst forecast Performance |
| datacite.titles.title.fl_str_mv | How to improve quality investing |
| dc.contributor.none.fl_str_mv | Biblioteca Digital do IPB |
| dc.creator.none.fl_str_mv | González, Luis Otero Santomil, Pablo Durán Vieito, João Paulo da Torre Reboredo, Juan Carlos |
| dc.date.Accepted.fl_str_mv | 2025-01-01T00:00:00Z |
| dc.date.available.fl_str_mv | 2025-07-15T14:29:42Z |
| dc.date.embargoed.fl_str_mv | 2025-07-15T14:29:42Z |
| dc.format.none.fl_str_mv | application/pdf |
| dc.identifier.none.fl_str_mv | http://hdl.handle.net/10198/34667 |
| dc.language.none.fl_str_mv | eng |
| dc.publisher.none.fl_str_mv | SAGE Publications |
| dc.rights.cclincense.fl_str_mv | http://creativecommons.org/licenses/by/4.0/ |
| dc.rights.none.fl_str_mv | http://purl.org/coar/access_right/c_abf2 |
| dc.subject.none.fl_str_mv | Quality investing Economic Moat ESG Analyst forecast Performance |
| dc.title.fl_str_mv | How to improve quality investing |
| dc.type.none.fl_str_mv | http://purl.org/coar/resource_type/c_6501 |
| description | In this article, we evaluate the relationship between quality investing combined with Economic Moat, ESG (Environmental, Social and Governance) and analyst opinions over the period 2014–2020 based on a data set comprising 803 US stocks. Performance is evaluated using several metrics (returns and alphas). Our results show that quality stocks measured by return on invested capital (ROIC) exhibit superior performance. The incorporation of competitive advantages allows a better discrimination among the classic high-quality strategies. Investment in stocks with quality and high ESG entails the payment of a premium but buying quality companies with Economic Moat makes up for this negative aspect. The results show how quality companies that have competitive advantages obtain a better future performance and are recognized by the market with a higher valuation. However, the markets may take time to recognize this value since the incorporation of the average Price-to-Price target (Analyst consensus) increases the future performance. JEL classification: G11; G14; G23 |
| dirty | 0 |
| eu_rights_str_mv | openAccess |
| format | article |
| fulltext.url.fl_str_mv | https://bibliotecadigital.ipb.pt/bitstreams/084614b5-31cf-48d8-ad5f-b3fbcb5af9c4/download |
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| identifier.url.fl_str_mv | http://hdl.handle.net/10198/34667 |
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| institution | Instituto Politécnico de Bragança |
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| language | eng |
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| organization_str_mv | urn:organizationAcronym:ipb |
| person_str_mv | González, Luis Otero Santomil, Pablo Durán Vieito, João Paulo da Torre Reboredo, Juan Carlos |
| publishDate | 2025 |
| publisher.none.fl_str_mv | SAGE Publications |
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| spelling | engSAGE PublicationsengIn this article, we evaluate the relationship between quality investing combined with Economic Moat, ESG (Environmental, Social and Governance) and analyst opinions over the period 2014–2020 based on a data set comprising 803 US stocks. Performance is evaluated using several metrics (returns and alphas). Our results show that quality stocks measured by return on invested capital (ROIC) exhibit superior performance. The incorporation of competitive advantages allows a better discrimination among the classic high-quality strategies. Investment in stocks with quality and high ESG entails the payment of a premium but buying quality companies with Economic Moat makes up for this negative aspect. The results show how quality companies that have competitive advantages obtain a better future performance and are recognized by the market with a higher valuation. However, the markets may take time to recognize this value since the incorporation of the average Price-to-Price target (Analyst consensus) increases the future performance. JEL classification: G11; G14; G23application/pdfengHow to improve quality investingGonzález, Luis OteroSantomil, Pablo DuránVieito, João Paulo da TorreReboredo, Juan CarlosHostingInstitutionOrganizationalBiblioteca Digital do IPBe-mailmailto:dspace@ipb.ptdspace@ipb.ptISSNIsPartOf2340-9444DOIIsPartOf10.1177/234094442312028102025-07-15T14:29:42Z20252025-01-01T00:00:00ZHandlehttp://hdl.handle.net/10198/34667http://purl.org/coar/access_right/c_abf2open accessQuality investingEconomic MoatESGAnalyst forecastPerformance349509 bytesFundação para a Ciência e a TecnologiaALGORITMI Research Center6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871Fundação para a Ciência e a TecnologiaResearch Center in Basic Education6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871Fundação para a Ciência e a TecnologiaResearch Centre in Digitalization and Intelligent Robotics6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871Fundação para a Ciência e a TecnologiaMountain Research Center6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871Fundação para a Ciência e a TecnologiaMountain Research Center6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871Fundação para a Ciência e a TecnologiaAssociate Laboratory for Sustainability and Tecnology in Mountain Regions6817 - DCRRNI IDCrossref Funder IDhttp://doi.org/10.13039/501100001871literaturehttp://purl.org/coar/resource_type/c_6501journal article2025http://creativecommons.org/licenses/by/4.0/http://purl.org/coar/access_right/c_abf2application/pdffulltexthttps://bibliotecadigital.ipb.pt/bitstreams/084614b5-31cf-48d8-ad5f-b3fbcb5af9c4/downloadBRQ Business Research Quarterly282453473 |
| spellingShingle | How to improve quality investing González, Luis Otero Quality investing Economic Moat ESG Analyst forecast Performance |
| status | SINGLETON |
| subject.fl_str_mv | Quality investing Economic Moat ESG Analyst forecast Performance |
| title | How to improve quality investing |
| title_full | How to improve quality investing |
| title_fullStr | How to improve quality investing |
| title_full_unstemmed | How to improve quality investing |
| title_short | How to improve quality investing |
| title_sort | How to improve quality investing |
| topic | Quality investing Economic Moat ESG Analyst forecast Performance |
| topic_facet | Quality investing Economic Moat ESG Analyst forecast Performance |
| url | http://hdl.handle.net/10198/34667 |
| visible | 1 |