About 10% of the SP 500 will report next week, and 24 of those 52 scheduled reports will be Financial companies.
Here is the SP 500 Earnings data by the numbers: (Source: IBES by Refinitiv)
- Fwd 4-qtr est:$174.68 vs $174.87 from last week
- PE ratio: 17.25x
- PEG ratio: 2.45x
- SP 500 earnings yield: +5.80% vs +5.85% from last week
- Year-over-yr growth of fwd estimate: +3.8% vs last week’s 3.95%.
Taking a look at the expected sector growth rates for Q2 and Q3 ’19 SP sectors, the Financial sector continues to show the best expected growth within the SP 500 for Q2 ’19 and is only currently exceeded by the Consumer Discretionary sector for Q3 ’19.
Let’s see what the sector holds next week – like Rodney Dangerfield Financials are getting no respect.
It’s a major overweight for clients so naturally I want to do the homework on it.
Taking a last look at full-year 2019 “expected” growth rates, only Health Care and Real Estate are showing fast growth rates today than on April 1. That’s important too – in a market and period where revisions are typically downward, watch for sector that have positive (i.e. higher revisions).
Financial’s and Consumer Discretionary look solid as well.
The earnings deluge starts next week.
Hope you find these insights helpful.
Thanks for reading.