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
Annual S&P 500 EPS Growth Through 2022 Goldman Sachs expects S&P 500 earnings to contract by 21% this year, before rebounding by 30% in 2021 and 11% in 2022. Image: Goldman Sachs Global Investment Research
% of IPO with Negative Earnings Growth at any cost? This chart shows the rise of loss-making companies going public. Image: Topdown Charts
Ratio of Mega-Cap Growth Stocks to the Rest of S&P 500 The rise in price of mega-cap growth stocks suggests that the earnings acceleration appears fully priced in. Image: Deutsche Bank Asset Allocation
S&P 500 Year/Year EPS Growth Goldman Sachs maintains the 2020 S&P 500 EPS estimate of $110 and adjusts the quarterly path of earnings growth. Image: Goldman Sachs Global Investment Research
Aggregate EPS Growth U.S. earnings are outperforming the rest of the world in Q1:2020, because the U.S. was the slowest to lock down its economy. Image: Deutsche Bank Asset Allocation
Annual S&P 500 EPS Growth Goldman Sachs expects no earnings growth this year. Image: Goldman Sachs Global Investment Research
Earnings, Dividends and Valuation Chart showing the deviation of the S&P 500 Index against its trend line. The U.S. stock market needs earnings growth to rise this year. Image: Fidelity Investments
S&P 500 EPS Growth vs. Price Performance Chart showing the poor relationship between earnings growth and market performance, even in the long term. Image: BMO Capital Markets Investment Strategy Group
Median S&P 500 EPS Growth The median S&P 500 stock is expected to grow earnings per share by 8% this year. Image: Goldman Sachs Global Investment Research
Earnings Estimate Progression This chart shows the earnings estimate progression since 2013. For this year, the consensus estimate of EPS growth is currently around 1.9%, and around 9.7% for 2020. Image: Fidelity Investments