U.S. ISM Manufacturing PMI vs. S&P 500 EPS Growth A rise in the U.S. ISM manufacturing PMI is suggesting positive growth in 1Q EPS, with expectations of outperforming the initial projections. Image: BofA US Equity & Quant Strategy
S&P 500 EPS Growth vs. Buyback Growth While EPS growth may be one factor influencing a company’s decision to repurchase its own shares, it is just one of many potential drivers of buyback activity. Image: Goldman Sachs Global Investment Research
S&P 500 EPS vs. Trend Do consensus EPS estimates for 2024 and 2025 accurately reflect an optimistic outlook, or are they overly optimistic? Image: J.P. Morgan
Total Equity Fund Flows vs. S&P 500 EPS Growth Over the past 5 weeks, equity funds have seen inflows of $75 billion. The relationship between equity fund inflows and the growth in earnings of S&P 500 companies exhibits a discernible correlation. Image: Deutsche Bank Asset Allocation
U.S. Economic Growth vs. S&P 500 EPS Growth Economic growth is a driver of earnings growth, as it creates opportunities for businesses to expand their operations, increase sales, and generate higher profits. Image: Goldman Sachs Global Investment Research
S&P 500 EPS Growth Estimates Analysts still expect S&P 500 earnings to improve going forward. Image: Goldman Sachs Global Investment Research
S&P 500 EPS Yield – IG Yield vs. TTM Buyback Yield Higher borrowing costs can discourage companies from engaging in stock buybacks. Image: BofA US Equity & Quant Strategy
S&P 500 EPS Estimates Goldman Sachs is more optimistic than consensus on EPS estimates for 2023 and 2024. Image: Goldman Sachs Global Investment Research
Revision to Consensus S&P 500 3Q EPS 2Q EPS fell by just 2% over the last 3 months, compared to the usual 4%. Image: BofA US Equity & Quant Strategy
S&P 500 EPS Are consensus EPS estimates too optimistic in a stagflation environment? Image: Morgan Stanley Research
Earnings – Peak to Trough Decline in LTM S&P 500 EPS During Recessions In the event of a U.S. recession, Goldman Sachs predicts that S&P 500 earnings could fall by 10% in 2023. Image: Goldman Sachs Global Investment Research