Weekly SP 500 Earnings Update

From Thomson Reuters “This Week in Earnings”:

  • Forward 4-qtr est: $168.26 vs last week’s $168.23
  • PE ratio: 16.6x
  • PEG ratio: 0.79x
  • SP 500 earnings yield: +6.01% vs last week’s 6.10%
  • Year-over-year growth of fwd est: +21.14 vs last week’s +20.85%

This week – per Thomson Reuters IBES – we get another 60 of the SP 500 companies reporting earnings.

There is no question the expected y/y growth rate of SP 500 earnings has slowed the rapid ascent we saw in Q1 ’18, but that is to be expected.

The expected year-over-year growth rate of SP 500 earnings for 2019 and 2020 are still expected at 10% y/y. That’s still a little better than the post WW II average of 7% per year.

The SP 500 earnings yield is still over 6% – my own opinion is that still a “reasonably-valued” SP 500, but no single metric has 100% accuracy in terms of its predictive value.

It’s expiration week, this coming week.

Thanks for reading this week’s abbreviate post.

 

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