S&P 500 Index Annualized Operating Leverage, Earnings Per Share Growth Less Sales Growth S&P 500 operating leverage is well above average. Is it sustainable? Image: Morgan Stanley Wealth Management
Magnitude of S&P 500 Quarterly Earnings Beats (Misses) The S&P 500 is on pace for its best quarterly earnings growth since the global financial crisis. Image: BCA Research
S&P 500 Earnings Estimates Through 2022 Morgan Stanley expects S&P 500 earnings to rebound to $189 in 2021 and $200 in 2022. Image: Morgan Stanley Research
S&P 500 Equity Risk Premium – Consensus Bottoms Up Earnings Yield – 10-Year Treasury Yield The S&P 500 Equity Risk Premium has increased over the last few months. Image: Morgan Stanley Research
YoY Change in S&P 500 Companies’ Mentions of “Inflation” Per Earnings Call vs. CPI YoY Historically, the S&P 500 tends to lag during periods of high inflation. Image: BofA Global Research
Valuation – IPOs with Negative Earnings Per Share and Price/Earnings Ratio Is the U.S. stock market facing a dotcom bubble 2.0? Image: Morgan Stanley Wealth Management
Valuation – S&P 500 Operating Earnings Per Share If companies are able to maintain their profit margins, the forward P/E ratio of the S&P 500 could fall to 20.1x by 4Q22. Image: J.P. Morgan Asset Management
Valuation – S&P 500 Index vs. S&P 500 Bank Index – 12-Month Forward Price/Earnings Ratio Banks still look cheap relative to the broad market. Image: Morgan Stanley Research
S&P 500 NTM Earnings Yield Gap The S&P 500 earnings yield gap is expected to move towards its long-term average. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Surprise Current estimates are forecasting an earnings surprise of 14.6% for the S&P 500, well above the long-run average of 7%. Image: J.P. Morgan Asset Management