Each month, we examine at an aspect of sector investing. This month, we are examining growth and valuation. Investors hunting for stocks that reasonably balance long-term growth prospects and current value characteristics might look at companies in the Healthcare, Financial, and Information Technology sectors. These are among the industry groups currently selling for (price/earnings)/(growth+yield) ratios at or below the S&P 500's ratio of 2.1. To generate the PEGY ratios, we use the P/E ratio for each sector based on forward earnings as the numerator. For the denominator, we average the growth rates for the past five years along with two years of forward estimates, this to achieve a smoother earnings growth rate trend. Then we add the current yield, to approximate total return. As an example, the current S&P 500 P/E ratio is 17.9, the current yield is 1.2%, and the historical growth rate is 9%. The formula is 17.9/(1.2+9.0)=1.7. Sectors with favorable growth and valuation characteristics, in addition to the three listed above, also include Energy and Materials. Premium-valued sectors with low growth rates include the consumer groups. Based on our analysis of growth rates and valuations, along with other factors, our current over-weight sectors are IT, Financial, Healthcare, Utilities, and Consumer Staples. Our under-weight sectors are Materials and Consumer Discretionary. Our Market-Weight sectors are Energy, Communication Services, Real Estate, and Industrial.

The Vickers Top Buyers & Sellers is a daily report that identifies the five companies the largest insider purchase transactions based on the dollar value of the transactions as well as the five companies the largest insider sales transactions based on the dollar value of the transactions.

The Portfolio Selector features the Argus Focus List, a group of 30 "best idea" stocks generated and regularly updated by Argus' analysts and investment policy committee. It also includes the director of research’s monthly investment strategy column, stock recommendations and sector picks, economic forecasts, and an asset allocation model. This month, the Focus List additions are Microsoft Corporation (MSFT); Coca-Cola Co (KO); Zions Bancorporation N.A (ZION); Lilly(Eli) & Co (LLY) and the Focus List deletions are Broadcom Inc (AVGO); Campbell Soup Co. (CPB); Regions Financial Corp. (RF); Teva Phar Inds Lt (TEVA).

Microsoft is the world's largest independent software developer. The company was founded on the MS Windows operating system and MS Office business applications suite for PCs. As it has grown, Microsoft has expanded into enterprise software with Windows Server, SQL Server, Dynamics CRM, SharePoint, Azure, and Lync; hardware with the Xbox gaming/media platform and the Surface tablet; and online services through MSN and Bing. Microsoft acquired Skype, the internet VoIP communications service, in October 2011. More than 50% of revenue is generated outside the U.S.