Why Trade 500 Stocks When You Can Trade Three?

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Sept. 18 (Bloomberg) -- On today's "Insight & Action," Adam Johnson looks at the S&P 500 Index's "Big Three." He speaks on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Why trade 500 stocks when you can trade three?

Time for a little "insight and action." let me share with you some research from the spoke -- from bespoke research.

Cosco, -- costco, paccar, and zimmer track the s&p 95% of the time.

Tell me which is paccar and which is s&p 500. look how closely these two track each other.

Paccar is the major -- maker of peterbilt.

Look at these three companies.

Maybe by looking at these three companies, we can get a sense for what's happening right now with the market as a whole.

Costco, traffic in stores is up five point -- up 5.25%. significant margin expansion due to automation.

That is jeffries -- jeffries.

Another theme.

Expanding margins . we will bring that right back.

For zimmer, we continue returning 2/3 of the cash flow to shareholders, dividend and buyback's. -- buybacks.

Another theme.

Take a look at what it is doing to the bottom line.

Look at the earning estimates -- earnings estimates.

What is suggested?

Maybe the numbers are too low for the s&p 500. 30 seconds with tom barrick.

This text has been automatically generated. It may not be 100% accurate.

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