SP 500 Earnings: Forward “Expected” Growth Rate now over 11%

A quick update on the SP earnings data in front of the long weekend:

Thomson Reuters data (by the numbers, This Week in Earnings dated 12/22/17)

  • Fwd 4-qtr est: $142.88
  • P.E ratio: 18.8x
  • PEG ratio: 1.68x
  • SP 500 earnings yield: +5.33% up a smidge from last week’s +5.32%
  • Year-over-year growth of the forward estimate: +11.15% vs last week’s +10.91%

Analysis / conclusion: this is the 10th consecutive week that the “y/y growth of the forward estimate” has remained above the 10% level, and with this week’s update, the expected forward growth rate is now over 11%. This is the longest stretch for the indicator above 10% expected growth (which – to be clear – is calculated on this blog rather than provided by Thomson Reuters I/B/E/S, so any mistakes are my own) since the 2007 – 2008 pre-Financial Crisis period.

The SP 500 earnings data is flashing green for sure.

The eternal question is how much is in the market at current prices ?

Using the bottom up estimate from Thomson Reuters I/B/E/S, the current expected SP 500 earnings growth rate for 2018 is 12%.

More to come all weekend.

Thanks for reading.


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