Earnings Growth – Mag 7 and S&P 500 ex-Mag 7 While the pace of earnings growth for the Magnificent Seven is expected to moderate from the explosive gains of recent years, they are still forecast to outperform the rest of the S&P 500 throughout 2025 and 2026. Image: J.P. Morgan Asset Management
Earnings Growth Goldman Sachs anticipates a more diversified earnings landscape for the S&P 500, with the dominance of the Magnificent Seven tech giants moderating as other companies pick up the pace. Image: Goldman Sachs Global Investment Research
YoY Earnings Growth and Average Outperformance of Beats Despite strong U.S. corporate performance in the current earnings season, investor enthusiasm and market reactions are tempered by underlying concerns about tariffs, interest rates, and economic uncertainty. Image: Bloomberg
Nominal S&P 500 Earnings Growth – Nominal GDP Growth The rapid acceleration of U.S. corporate earnings growth over the past three decades, which has outpaced the broader U.S. economy, is a key factor behind today’s high market valuations—a trend that may persist. Image: Deutsche Bank
Magnificent Seven’s YoY Earnings Growth The Magnificent Seven’s earnings growth is slowing, while emerging technologies like DeepSeek underscore the importance of diversifying beyond these tech giants. Image: Bloomberg
S&P 500 Fwd. Earnings Growth and Russell 2000 Fwd. Earnings Growth The recovery in EPS growth has been driven by a small number of large-cap companies, which may indicate a late-cycle extension in the economic cycle. Image: Morgan Stanley Research
U.S. Job Openings vs. U.S. Implied Earnings Growth The decline in U.S. job openings may not bode well for earnings growth. Image: Morgan Stanley Wealth Management
Philadelphia Fed Survey vs. S&P 500 Earnings Growth Rate The bear market bottom is probably not yet in as the Philly Fed survey suggests an earnings recession is highly likely. Image: Real Investment Advice
Earnings Growth for U.S. IG Issuers Earnings growth has peaked. Can U.S. stocks continue do well? Image: BofA Global Research
Earnings Growth – S&P 500 Historical Operating and Normalized EPS The U.S. stock market needs earnings growth to rise in 2021 and 2022 as the global economy recovers. Image: BofA US Equity & Quant Strategy
Global EPS – Global Earnings Growth This chart highlights the strong recovery in global earnings growth. Image: Fidelity Investments