Forward EPS YoY % Change vs. S&P 500 Annual Rate of Change Market performance typically reflects annual changes in corporate earnings. Should the U.S. economy decelerate in 2025, earnings growth may decline, potentially resulting in slower market growth. Image: Real Investment Advice
S&P 500 Valuation Matrix (12-Month Forward EPS and P/E Multiple) According to Morgan Stanley, U.S. equity market gains in 2024 may stall due to high forward multiples and ambitious earnings forecasts for the next 12 months. Image: Morgan Stanley Wealth Management
Time Series of S&P 500 Price, Forward EPS and Price to Forward EPS The S&P 500 has returned to its January 2022 level. Image: BofA US Equity & Quant Strategy
S&P 500 Forward EPS S&P 500 forward EPS estimates tend to stabilize. Image: The Daily Shot
S&P 500 Forward EPS vs. Fed Funds Rate When forward EPS growth goes negative, the Federal Reserve typically does not hike rates. Image: Morgan Stanley Research
S&P 500 Forward EPS vs. S&P 500 Is there further downside ahead for the S&P 500, as an earnings recession is not priced into U.S. equities? Image: Morgan Stanley Research
Earnings – S&P 500 Forward EPS Will 12-month forward EPS start to rise in H2 2023? Image: Alpine Macro
S&P 500 Forward EPS vs. U.S. Unemployment Rate Weakness in S&P 500 earnings is a potential indicator of a higher U.S. unemployment rate. Image: Morgan Stanley Research
FMS Investors – Net % Say Corporate Earnings Will Improve vs. S&P 500 Consensus Forward EPS Will analysts continue to lower S&P 500 earnings estimates? Image: BofA Global Fund Manager Survey
Philly Fed Future Nominal Orders vs. S&P 500 12-Months Forward EPS (Leading Indicator) A severe contraction in earnings growth should hurt U.S. stocks in 2023. Image: Nordea and Macrobond
Daily % Change in S&P 500 Forward EPS Has the S&P 500 more room to fall as inflation hits earnings? Image: Morgan Stanley Research