Proportion of S&P 500 Beating Earnings Estimate

Proportion of S&P 500 Beating Earnings Estimate The proportion of S&P 500 companies that beat on earnings remains well above the historical average, indicating sustained corporate strength and financial resilience, contributing to the overall bullish sentiment in the stock market. Image: Deutsche Bank Asset Allocation

S&P 500 Earnings Estimates

S&P 500 Earnings Estimates According to Morgan Stanley, the S&P 500’s earnings per share are forecasted to reach $269 in 2025 and $297 in 2026, indicating a favorable outlook for profitability and growth. Image: Morgan Stanley Wealth Management

S&P 500 Earnings

S&P 500 Earnings The S&P 500 is expected to report strong earnings growth for the second quarter of 2024, driven primarily by the “Magnificent Seven” companies. Image: Deutsche Bank Asset Allocation

S&P 500 Earnings vs. CPI and PPI

S&P 500 Earnings vs. CPI and PPI While inflation can have an impact on S&P 500 earnings, it is generally considered more of a lagging indicator rather than a leading indicator. Image: BofA US Equity & Quant Strategy

Consensus Earnings Expectations

Consensus Earnings Expectations According to FactSet, the S&P 500 is expected to report earnings growth of 8.8% year-over-year in the second quarter of 2024, which would be the highest such growth rate since the first quarter of 2022. Image: Yahoo Finance

Deviation of Earnings Above/Below Long Term Growth Trend

Deviation of Earnings Above/Below Long Term Growth Trend Some investors are becoming increasingly concerned as the current earnings estimates deviate significantly from the long-term growth trend, raising questions about the sustainability of these elevated projections. Image: Real Investment Advice

Earnings Growth

Earnings Growth The dominance of mega-cap tech companies is expected to persist, but their EPS growth may slow. This could narrow the gap in EPS growth between these companies and the S&P 500 median companies. Image: Goldman Sachs Global Investment Research

World Technology Earnings vs. Global Market

World Technology Earnings vs. Global Market World technology earnings have surpassed those of the global market, with the tech sector’s significant growth and innovation driving this trend. Image: Goldman Sachs Global Investment Research

S&P 500 Valuation – Shiller’s Cyclically-Adjusted Price-To-Earnings (CAPE) Ratio

S&P 500 Valuation – Shiller’s Cyclically-Adjusted Price-To-Earnings (CAPE) Ratio The Shiller CAPE ratio is elevated relative to history. While valuation is not a reliable timing tool, investors should be mindful of the potential for lower future returns when valuations remain high for an extended period. Image: Morgan Stanley Research

Earnings – S&P 500 LTM EPS Growth YoY

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