Search Results for: earnings

S&P 500 Price Target Citing robust corporate earnings, Deutsche Bank has set a year-end 2024 target of 5,500 for the S&P 500 index. Image: Deutsche Bank

Valuation – S&P 500 Next-Twelve-Month P/E Ratio The S&P 500 NTM P/E ratio is currently at a high level of 20.9, indicating that investors are willing to pay a relatively high price for each dollar of expected earnings in the next twelve months. Image: Goldman Sachs Global Investment Research

Valuation – Equal-Weight S&P 500 P/E Multiple According to Goldman Sachs, the equal-weight S&P 500 P/E multiple is currently 13% above fair value. This suggests that stocks in the S&P 500 Equal Weight Index may be relatively more expensive compared to their earnings potential. Image: Goldman Sachs Global Investment Research

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 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

S&P 500 Average Negative Sentiment Score YoY vs. Quarterly EPS YoY (Leading Indicator) The significant increase in corporate sentiment indicates a potential recovery in earnings, which is good news. Image: BofA Global Research

Average of Straddle Buying Returns Buying straddles into earnings is a popular speculative tactic for trading stock volatility, which has proven to be a successful strategy thus far in 2023. Image: Goldman Sachs Global Investment Research

Valuation – S&P 500 P/E, S&P Equity Risk Premium and U.S. 10-Year Treasury Yields Significant multiple expansion in the absence of a corresponding increase in earnings growth can generally be a warning sign that U.S. stocks are getting too expensive. Image: Morgan Stanley Research

Senior Loan Officer Survey and S&P 500 EPS A continued slowdown in earnings growth is expected through the end of the year. Image: Morgan Stanley Research

Average Mention of Weak Demand per S&P 500 Company Mentions of weak demand during earnings calls are rising to a record level, which is not good news. Image: BofA Global Research

Bottom-Up S&P 500 EPS Revision Will the earnings season drive the S&P 500 up or down? Image: BofA US Equity & Quant Strategy