S&P 500 EPS Growth vs. Buyback Growth This chart shows the historical correlation between S&P 500 EPS growth and buyback growth (R² = 0.32). Goldman Sachs expects buybacks to fall by 50% during 2020 and EPS by 33%. Image: Goldman Sachs Global Investment Research
Peak to Trough Decline in LTM S&P 500 EPS during 11 Recessions Since 1947 Goldman Sachs expects EPS to fall 33% in the United States (base case scenario). Image: Goldman Sachs Global Investment Research
S&P 500 Earnings and Dividend Growth (S&P 500 EPS and DPS) This chart suggests estimates for earnings and dividend growth this year, highlighting the financial crisis and the Great Depression. Image: Goldman Sachs Global Investment Research
Sensitivity of S&P 500 EPS Forecast to Changes in GDP and the U.S. Dollar This table suggests the sensitivity of S&P 500 EPS forecast to changes in GDP and the U.S. dollar. Image: J.P. Morgan US Equity Strategy & Global Quantitative Research
U.S. Economic Growth vs. S&P 500 EPS Growth This chart shows the link between economic growth and S&P 500 EPS growth, and highlights the sensitivity of S&P 500 EPS to macro variables. Image: Goldman Sachs Global Investment Research
Expected Path Quarterly S&P 500 EPS Growth Goldman Sachs expects 2020 EPS estimate equals $157, corresponding to a decline of 5% vs. 2019. Image: Goldman Sachs Global Investment Research
Annual S&P 500 EPS Growth and S&P 500 Forward P/E Goldman’s baseline scenario suggests S&P 500 EPS growth of 0% in 2020 and forward P/E multiple equals 19.4x at year-end 2020. Image: Goldman Sachs Global Investment Research
Annual S&P 500 EPS Growth Goldman Sachs expects no earnings growth this year. Image: Goldman Sachs Global Investment Research
Facebook, Amazon, Apple, Microsoft and Google and S&P 500 EPS Growth FAAMG supported S&P 500 EPS growth. Image: Goldman Sachs Global Investment Research
S&P 500 EPS Growth vs. Price Performance Chart showing the poor relationship between earnings growth and market performance, even in the long term. Image: BMO Capital Markets Investment Strategy Group