Valuation – Consensus Forward P/E vs. Expected EPS Growth The P/E premium reflects higher expected EPS growth, supported by a strong current correlation between EPS growth forecasts and P/E multiples. Image: Goldman Sachs Global Investment Research
Consensus EPS Growth Estimates Even amid economic uncertainties, consensus estimates forecast a solid 10% rise in S&P 500 earnings per share for 2025, reflecting the resilience of the corporate sector. Image: Goldman Sachs Global Investment Research
EPS Growth Estimate Despite a downward revision, consensus 2025 EPS growth estimates still project strong earnings growth. Image: Goldman Sachs Global Investment Research
S&P 500 Quarterly YoY EPS Growth Relative to Consensus Expectations Recent years have seen S&P 500 earnings growth consistently exceed expectations, reflecting strong corporate performance and favorable economic conditions, which have kept analysts optimistic about future growth. Image: Goldman Sachs Global Investment Research
U.S. Equity EPS Growth Expectations U.S. equity EPS growth expectations are particularly strong, with analysts projecting double-digit growth in both 2025 and 2026, driven by economic expansion and technological advancements. Image: TS Lombard
S&P 500 EPS Growth Consensus estimates suggest that 72% of S&P 500 companies are projected to report EPS growth in 3Q24, reflecting a broader trend of improving earnings outlooks across various sectors. Image: BofA US Equity & Quant Strategy
EPS Growth – Political Party and S&P 500 Profits Cycle While election results can impact markets in the short term, the underlying profitability of companies is a stronger driver of stock prices over time. Image: BofA US Equity & US Quant Strategy
Global Composite PMI and EPS Growth The Global Composite PMI serves as a leading indicator for EPS growth, with its trends providing insights into future corporate earnings performance. Image: J.P. Morgan
Earnings – S&P 500 LTM EPS Growth YoY According to Morgan Stanley’s leading earnings indicator, the outlook for S&P 500 EPS over the next 12 months is positive, suggesting a potential rise in profitability. Image: Morgan Stanley Research
U.S. ISM Manufacturing PMI vs. S&P 500 EPS Growth A rise in the U.S. ISM manufacturing PMI is suggesting positive growth in 1Q EPS, with expectations of outperforming the initial projections. Image: BofA US Equity & Quant Strategy
S&P 500 EPS Growth vs. Buyback Growth While EPS growth may be one factor influencing a company’s decision to repurchase its own shares, it is just one of many potential drivers of buyback activity. Image: Goldman Sachs Global Investment Research