S&P 500 Profit Margin – Operating Earnings/Sales Structural changes in the market—such as the rise of high-margin sectors like technology, economies of scale, and favorable financial conditions for large-cap firms—have driven elevated profit margins in the S&P 500. Image: J.P. Morgan Asset Management
S&P 500 Quarterly Operating Earnings per Share Over the past eighty years, the median long-term annual growth rate in earnings for the S&P 500 is about 8%. Image: Richardson Wealth
Valuation – S&P 500 Operating Earnings Per Share If companies are able to maintain their profit margins, the forward P/E ratio of the S&P 500 could fall to 20.1x by 4Q22. Image: J.P. Morgan Asset Management
S&P 500 Operating Earnings and NIPA Corporate Profits Goldman Sachs expects S&P 500 margins to rise slightly in 2020. Image: Goldman Sachs Global Investment Research
S&P 500 Quarterly Operating Earnings Expectations Despite the earnings squeeze, the Fed’s dovish pivot and low interest rates should continue to support the stock market. Image: Bianco Research
S&P 500 Operating Earnings / NIPA Profits and S&P 500 Returns Interesting chart suggesting that S&P500 2-year returns will be negative, as they were in the late 1990s, when S&P 500 operating earnings rose relative to NIPA profits (thanks to buybacks). Image: Oxford Economics, Macrobond
S&P 500 Operating Earnings per Share The S&P 500 quarterly operating earnings per share are Standard & Poors consensus analyst expectations as of 30 June 2019. Picture Source: J.P. Morgan Asset Management
S&P 500 Index Annualized Operating Leverage, Earnings Per Share Growth Less Sales Growth S&P 500 operating leverage is well above average. Is it sustainable? Image: Morgan Stanley Wealth Management
Earnings – S&P 500 YoY Operating EPS Growth Are earnings too good to ignore? Image: J.P. Morgan Asset Management
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
Operating Leverage Contribution and Earnings Rebound Morgan Stanley expects operating leverage to fuel an earnings rebound, through aggressive cost-cutting measures. Image: Morgan Stanley Research