Earnings Growth Goldman Sachs forecasts a narrowing gap in earnings growth between the Magnificent Seven and the rest of the S&P 500, with the former’s outsized contribution to index earnings expected to diminish. Image: Goldman Sachs Global Investment Research
EPS – Earnings-Per-Share Growth Forecast The EPS growth forecasts for all regions are 26% to 30% for 2021, and double-digit growth is expected in 2022. Image: Morgan Stanley 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
S&P 500 Earnings Growth Positive earnings growth continues to support the U.S. stock market. Image: Deutsche Bank Asset Allocation
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