Median S&P 500 Company Year/Year EBIT Margin Growth (Excluding Financials and Energy) Profit margins for the median S&P 500 firm are expected to decline significantly. Image: Goldman Sachs Global Investment Research
S&P 500 Index Forward 12-Month EPS Growth and Fed Funds Rate Historically, Fed rate hikes tend to be a headwind to profits. Image: Morgan Stanley Wealth Management
EPS – South Korea Exports vs. S&P 500 Earnings per Share Should investors expect a decline in S&P 500 profits going forward? Image: Morgan Stanley Wealth Management
ISM Manufacturing PMI and S&P 500 Operating Margin The Manufacturing Purchasing Managers Index has peaked. Will S&P 500 operating profit margins roll over? Image: Morgan Stanley Wealth Management
Inflation – Single Most Important Problem Facing Small Business Owners Inflation is supposed to reduce profit margins. Image: BCA Research
U.S. Small-Cap Stocks – Share of Russell 2000 Stocks with Negative NTM Net Income The number of unprofitable companies in the Russell 2000 is rising. Image: Goldman Sachs Global Investment Research
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
Gold Price Performance – Day vs. Night Like the S&P 500, Gold also loves the night. Since 2006, the real profits have been made outside regular trading hours. Image: Lohman Econometrics
SPY S&P 500 ETF – Day vs. Night Price Returns The S&P 500 loves the night. Since 1993, the real profits have been made outside regular trading hours. Image: Lohman Econometrics
S&P 500 Sectors’ Relative Performance Sensitivity to Real Rates Can higher rates boost financials by increasing profit margins? Image: BofA US Equity & Quant Strategy