S&P 500 Index and Earnings per Share Corporate earnings are the cornerstone of equity prices. Deutsche Bank’s positive forecast for the S&P 500 index reflects a general belief in the strength of these earnings. Image: Yahoo Finance
Earnings Sentiment (Analyst Upgrades Minus Downgrades Across Markets) Will earnings sentiment in the S&P 500 improve, driven by expectations for strong corporate performance during the earnings season? Image: Goldman Sachs Global Investment Research
Earnings – S&P 500 Consensus EPS Revision 2024 EPS estimates point to a typical non-recessionary trend, suggesting a positive market outlook and the potential for strong corporate profits. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Estimates Morgan Stanley projects that the S&P 500 will reach earnings per share of $269 in 2025 and $297 in 2026, indicating a positive outlook for profitability and growth. Image: Morgan Stanley Wealth Management
Deviation of Earnings Above/Below Long Term Growth Trend Some investors are becoming concerned as the current earnings estimates deviate significantly from the long-term growth trend, along with the effect of a Fed rate-cutting cycle. Image: Real Investment Advice
S&P 500 Aggregate Earnings Beat Q2 2024 S&P 500 earnings beats are expected to align with the historical average, contributing to overall market optimism and investor sentiment. Image: Deutsche Bank Asset Allocation
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 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 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 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