Global Nominal GDP and Corporate Profits

Global Nominal GDP and Corporate Profits This chart shows the correlation and the slowdown in global growth and corporate profits. Historically, margin pressures have preceded the start of recessions. Image: J.P. Morgan

S&P 500 EPS Beat vs. Consensus Estimate

S&P 500 EPS Beat vs. Consensus Estimate Since 2000 Corporate America’s ability to maintain profit margins was again demonstrated by a robust 1Q 2023 earnings report, beating expectations by a wide margin. Image: BofA US Equity & Quant Strategy

Valuation – S&P 500 Operating Earnings Per Share

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

Top 5 vs. S&P 500 ex-Top 5 – YoY Contribution of EPS and P/E to Returns

Top 5 vs. S&P 500 ex-Top 5 – YoY Contribution of EPS and P/E to Returns The performance gap could widen further, as the top 5 largest stocks in the S&P 500 are superior on almost every financial metric (revenue, profit growth, margin structure, volatility and corporate leverage). Image: Credit Suisse Research