Stocks – High Quality Relative Earnings Revisions Breadth and High Quality Factor Relative Performance In a late-cycle market, investors looking for stability might find high-quality stocks appealing, given their historical ability to provide robust protection against both market volatility and economic downturns. Image: Morgan Stanley Research
U.S. Earnings Revision While analysts anticipate a slowdown in the Mag 7’s earnings growth for 2025 compared to previous years, they still expect these tech giants to lead the market significantly. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Revisions Breadth and S&P 500 YoY Performance The divergence between earnings revisions and S&P 500 performance suggests that investors are looking beyond current analyst estimates, potentially betting on stronger-than-expected corporate performance. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth S&P 500 earnings revision breadth remains in negative territory, suggesting that there is still a cautious outlook for future earnings of S&P 500 companies. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth Earnings revisions breadth for both large and small caps has returned to negative territory, which means that the overall sentiment and expectations for future earnings have worsened. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth vs. S&P 500 YoY The decline in earnings revisions breadth and its deviation from the S&P 500 performance suggests a disparity between analyst expectations for corporate earnings and the actual trajectory of the S&P 500. Image: Morgan Stanley Research
S&P 500 Earnings Revision Sentiment and Returns There is generally a good correlation between S&P 500 earnings revision sentiment and returns. Image: Goldman Sachs Global Investment Research
S&P 500 Earnings Revisions vs. U.S. Dollar Index (DXY) A strong U.S. dollar is not good for earnings revisions. Image: Morgan Stanley Research
Seasonality – Weekly Change in Earnings Revisions Breadth Historically, September and October have been challenging for earnings revisions. Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth and S&P 500 NTM EPS How will earnings growth drive the U.S. stock market? Image: Morgan Stanley Research
S&P 500 Earnings Revisions Breadth Should U.S. equity investors expect further downward earnings revisions? Image: Morgan Stanley Research