U.S. Auto and Housing Sales
U.S. Auto and Housing Sales Signs of a strong recovery in U.S. auto and housing sales are evident. Image: BofA Global Investment Strategy
U.S. Auto and Housing Sales Signs of a strong recovery in U.S. auto and housing sales are evident. Image: BofA Global Investment Strategy
U.S. Housing – Existing Home Sales Price U.S. house prices rise much faster than wages and become too expensive for most young people. Image: BofA Global Investment Strategy
S&P 500 Price, Sales, EPS and GDP S&P 500 profits have exceeded their pre-pandemic level. 4Q 2020 EPS came in 2% above 4Q 2019. Image: Goldman Sachs Global Investment Research
S&P 500 Foreign Sales % by Year The S&P 500 is more global than 2-3 decades ago, as 30% of S&P 500 sales come from overseas. Image: BofA US Equity & Quant Strategy
Return and Valuation – Stocks with EV/Sales Ratios Above 20x as Share of U.S. Equity Trading Volumes and Market Capitalization The median stock with an EV/sales ratio above 20x has generated a subsequent 12-month return of -1% since 1985. Image: Goldman Sachs Global Investment Research
2020 Retail Sales in the U.S. and Euro Area This chart shows a sweet V-shaped recovery in U.S. and EU retail sales. Image: BofA Global Research
Inflation – S&P 500 LTM Sales Growth vs. Core CPI Since 1970 Rising inflation tends to boost S&P 500 earnings. According to Goldman Sachs, a 100bp increase in average annual core CPI would lift the S&P 500 EPS to $170 in 2021. Image: Goldman Sachs Global Investment Research
China Sales Exposure – Euro Stoxx 50 vs. S&P 500 Europe equities are more sensitive than the U.S. market, as the exposure of the Euro Stoxx 50 index to China is about twice that of the S&P 500. Image: Goldman Sachs Global Investment Research
U.S. Firms with High China Sales Exposure vs. S&P 500 Chart showing that U.S. stocks with high revenue exposure to China have suffered greater losses. Image: Goldman Sachs Global Investment Research
Median Stock EV/Sales Valuation: Russell 3000 Software vs. Total Russell 3000 The valuation of software stocks is close to the highest levels since the internet bubble. Image: Goldman Sachs Global Investment Research