{"id":10721,"date":"2020-10-01T15:55:23","date_gmt":"2020-10-01T21:55:23","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=10721"},"modified":"2020-10-01T15:55:23","modified_gmt":"2020-10-01T21:55:23","slug":"quarter-end-data-points-and-top-10-holdings","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=10721","title":{"rendered":"Quarter-end Data Points and Top 10 Holdings"},"content":{"rendered":"

One of the spreadsheets kept since 2011 is the actual EPS and revenue growth by quarter and by sector for the SP 500.<\/p>\n

One observation that jumped out when updating the actual Q2 ’20 growth rates today was that the SP 500 has seen very little earnings growth since 2018.<\/p>\n

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Click to open \/ enhance \/ expand<\/figcaption><\/figure>\n

Note the overall SP 500 EPS growth rate since Q1 ’19.<\/p>\n

One explanation could be that the tax cut really boosted 2018 earnings, thus the 2019 “compares” were much smaller.<\/p>\n

Although 2017 SP EPS growth by quarters isn’t shown, if the average of the 15 quarters is taken – Q1 ’17 to Q3 ’20 – SP 500 EPS growth has averaged 5.5% since the start of 2017.<\/p>\n

That’s below the long-term average of 7%.<\/p>\n

——————————————–<\/p>\n

Final Q2 ’20 data<\/strong><\/em> shows that the final bottom-up estimate for Q2 ’20 was $27.98. The estimate started the quarter at $23.16.<\/p>\n

Here is how the expected growth rate changed for Q2 ’20 SP 500 EPS by sector:<\/p>\n

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Click to open \/ expand \/ enhance<\/figcaption><\/figure>\n

Over the last 12 weeks, the greatest rate of improvement occurred in these sectors:<\/p>\n