22 May 2015 US Equity Insights It's time to buy the Big & Low 25 stock basket again as Energy names tall out The 25 stocks that most lower the S&P PE are attractive again. These stocks have big market cap and earnings weights and trade at low PEs vs. the S&P. These 25 stocks are: 9 Financials (JPM, C, WFC, BAC, GS, MET, PRU, AIG, COF), 8 Tech (AAPL, IBM, HPO, CSCO, MU, QCOM, INTC, ORCL), 2 Airlines (AAL, DAL), 2 Telecom (VZ, T), 2 Autos (GM, F), 1 Health Care (GILD), and 1 Energy (VLO). The aggregate PE on 2015 EPS of these 25 stocks is 12 vs. 20x for the S&P excluding them. We see value at Telecom, but return it to EW from the OW set Jan end and put Media/Cable back to EW rom UW. We OW Heath Care, Tech, Financials and Utilities. We UW Energy, Industrials and Materials. Figure 10125 stocks that lower the S&P 500 PE the most, i.e. stocks with big market cap and earnings weights and trade at low PEs vs. the S&P no- NAT* Sector Industry Market Pt on Earnings Cap ($bn) 201SEPS Weight Earnings Weight • (Stock 2015 PE - S&P 500 2015 PEI AAPL-US Apple Inc Information Technology Technology Hardware, Storage & Pell 757.6 14.1 5.04% -0.184 JPM-US JPMorgan Chase & Co Financials Banks 247.9 11.3 2.06% -0.132 C-US Citigroup Inc Financials Banks 166.5 10.0 1.57% -0.122 GILD-U5 Gilead Sciences inc Health Care Biotechnology 164.1 10.0 1.53% -0.119 IBM-US International Business I Information Technology IT Services 159.7 11.0 1.38% -0.093 AAL-US American Airlines Grew Industrials Airlines 30.9 5.0 0.67% -0.085 WFC-US Wells Fargo & Co Financials Banks 262.9 13.5 1.84% -0.078 BAC-US Bank of America Corp Financials Banks 176.1 12.3 1.33% -0.072 V2-US Verizon Communicatioi Telecommunication Services Diversified Telecommunication Servic 206.5 13.0 1.51% -0.071 GM-US General Motors Co Consumer Discretionary Automotoles 47.4 7.7 0.57% -0.058 GS-US Goldman Sachs Group I Financials Capital Ma