S&P 500 Quarterly Earnings S&P 500 earnings growth in Q1 2025 was robust. Although earlier forecasts anticipated slower growth, actual results surpassed expectations, showing only a mild deceleration while maintaining double-digit gains. Image: Deutsche Bank Asset Allocation
U.S. GDP vs. S&P 500 EPS The strong correlation between GDP growth and S&P 500 EPS underscores the importance of cautious investment strategies, particularly given current high market valuations and optimistic earnings forecasts. Image: Real Investment Advice
S&P 500 Cycle Composite Based on the S&P 500 Cycle Composite forecast, an uptrend is expected to start around this time and continue through the first week of March 2025. Image: Ned Davis Research
S&P 500 Earnings Estimates Morgan Stanley forecasts S&P 500 earnings per share to hit $271 in 2025 and $303 in 2026, indicating a bullish market outlook. Image: Morgan Stanley Wealth Management
Predicted and Actual Returns for the S&P 500 Index Wall Street strategists have a long history of inaccurate forecasts, having been overly pessimistic in four out of the past five years, which has led to consistent underestimations of market performance. Image: Bloomberg
S&P 500 2025 Price Target Fundstrat’s Tom Lee forecasts a bullish first half of 2025, with the S&P 500 expected to hit 7,000 by mid-year before falling to 6,600 by year-end, due to potential impacts from tariffs and DOGE on GDP. Image: Fundstrat Global Advisors, LLC
S&P 500 Index and Earnings per Share Corporate earnings are the cornerstone of equity prices. Deutsche Bank’s positive forecast for the S&P 500 index reflects a general belief in the strength of these earnings. Image: Yahoo Finance
S&P 500 LTM EPS Deutsche Bank is confident in its revised 2024 S&P 500 EPS base case forecast, which now stands at $258, up from $250. Image: Deutsche Bank Asset Allocation
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
Possible Scenarios for the S&P 500 According to Goldman Sachs forecasts, there is a 25% probability that the S&P 500 index will reach 5,000 by the end of 2024. Image: Goldman Sachs Global Investment Research
Scenario Analysis Around Baseline S&P 500 Price Target Goldman Sachs’s baseline forecast for the S&P 500 at the end of 2022 is 4,900. Image: Goldman Sachs Global Investment Research