SP 500 Earnings Stellar, but Lackluster Response

 

As a regular Bespoke follower and subscriber, the research service always has a knack of quantifying the important points in the market, and this post today – copies and pasted today from Twitter, articulates exactly what is going on within the SP 500 today.

Great Q1 ’18 earnings, poor response by the individual stocks themselves and the SP 500.

Here is the weekly update of the Thomson Reuters IBES numbers:

  • Fwd 4-qtr est: $162.43
  • P.E ratio: 16.4x
  • PEG ratio: 0.81x
  • SP 500 earnings yield: +6.08%
  • Year-over-year growth of forward estimate: +20.29%

(Source: This Week in Earnings, dated 4/27/18)

Conclusion: Looking at SP 500 “revisions” data, (not shown) 69% of analyst estimate changes were “positive this week” well ahead of the last few weeks. This blog will have a chart on this metric this weekend, as a few other topics are examined.

Here is the 4-week change in the SP 500 expected Q1 ’18’s earnings growth:

  • 4/27/18: +24.6%
  • 4/20/18: +20.0%
  • 4/13/18: +18.6%
  • 4/6/18: +18.4%
  • 4/1/18: +18.5%

Here is the expected 4-week change in the SP 500 expected Q2 ’18 earnings growth:

  • 4/27/18: +19.6%
  • 4/20/18: +19.8%
  • 4/13/18: +19.8%
  • 4/6/18: +19.7%
  • 4/1/18: +19.8%

Q2 ’18’s expected earnings growth for the benchmark is rock solid – no downward revisions at all.

More to come this weekend on sectors, etc.

Thanks for reading.

 

 

 

 

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