Equity Market Concentration – Market Capitalization of 10 Largest Companies as Share of S&P 500 Total Concerns persist about excessive concentration, as the top 10 stocks in the S&P 500 hold a significantly larger weight in the index than their share of earnings would suggest. Image: Goldman Sachs Global Investment Research
Top 10 Companies’ Share of Market Capitalization China’s stock market concentration is moderately lower than that of the United States. Image: Goldman Sachs Global Investment Research
Top Five Companies % of S&P 500 Market Capitalization The S&P 500 is experiencing unprecedented levels of concentration. While the concentration presents potential risks, the fundamentals of the top 5 companies remain strong, with elevated profit margins and robust cash flow generation. Image: Deutsche Bank
Capital Expenditure by Magnificent Seven Companies vs. Share Price Index Major U.S. tech companies are maintaining their focus on AI infrastructure investment, even as DeepSeek’s breakthroughs raise questions about spending sustainability. Image: Goldman Sachs Global Investment Research
Seven Largest Companies as Share of S&P 500 Total Market Capitalization The seven largest stocks in the S&P 500 index account for 33% of its total market capitalization. While this high concentration doesn’t necessarily predict market downturns, it can potentially lead to increased volatility. Image: Goldman Sachs Global Investment Research
S&P 500 – Top 10 U.S. Companies in Q1 2000 Trailing 12-Month GAAP Net Income Tracked Through to 2025 Maintaining dominance has historically been a challenge for the largest earners in the S&P 500. Four of the top 10 earners from 2000 now generate less nominal earnings than they did at the start of the…
Earnings of Tech Companies While U.S. tech stocks are riding a wave of strong performance driven by both hype and solid earnings fundamentals, non-tech stocks face prolonged stagnation in earnings. Image: Topdown Charts
S&P 500 – Top 10 U.S. Companies by Market Capitalization Relative to Total The dominance of the top 10 U.S. companies in the S&P 500 Index raises concerns about the index’s ability to provide adequate diversification for investors. Image: Societe Generale Cross Asset Research
Proportion of Companies Beating Earnings Estimates In Q3 2024, the proportion of U.S. corporate earnings exceeding expectations reached 77%, while in Europe, it was 62%, both surpassing their historical median levels. In contrast, the proportion in Japan was only 39%. Image: Deutsche Bank Asset Allocation
Proportion of Companies Beating Earnings Estimates In the third quarter of 2024, U.S. companies outperformed their counterparts in Europe, Japan, and emerging markets, with a higher percentage exceeding earnings estimates. Image: Deutsche Bank Asset Allocation
Percentage of Companies Beating Earnings Estimates by Quarter S&P 500 companies are experiencing a notable decline in their earnings performance, with the rate of companies beating earnings estimates at its lowest in nearly two years. Image: Bloomberg