{"id":8207,"date":"2018-10-08T14:31:11","date_gmt":"2018-10-08T14:31:11","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=8207"},"modified":"2018-10-08T14:31:11","modified_gmt":"2018-10-08T14:31:11","slug":"sp-500-revenue-growth-has-accelerated-last-3-years-little-told-story","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=8207","title":{"rendered":"SP 500 Revenue Growth Has Accelerated Last 3 Years: Little-Told Story"},"content":{"rendered":"<p>Here is a quick history of the SP 500&#8217;s y\/y revenue growth since early 2015:<\/p>\n<ul>\n<li><em><strong>Q3 &#8217;18:<\/strong><\/em> +7.3% (est)<\/li>\n<li><em><strong>Q2 &#8217;18:<\/strong><\/em> +10.0%<\/li>\n<li><em><strong>Q1 &#8217;18:<\/strong><\/em> +7.3%<\/li>\n<li><em><strong>Q4 &#8217;17:<\/strong><\/em> +8.0%<\/li>\n<li><em><strong>Q3 &#8217;17:<\/strong><\/em> +6.0%<\/li>\n<li><em><strong>Q2 &#8217;17:<\/strong><\/em> +5.3%<\/li>\n<li><em><strong>Q1 &#8217;17:<\/strong><\/em> +7.7%<\/li>\n<li><em><strong>Q4 &#8217;16:<\/strong><\/em> +5.0%<\/li>\n<li><em><strong>Q3 &#8217;16:<\/strong><\/em> +2.7%<\/li>\n<li><em><strong>Q2 &#8217;16:<\/strong> <\/em>-0.2%<\/li>\n<li><em><strong>Q1 &#8217;16:<\/strong><\/em> -1.5%<\/li>\n<li><em><strong>Q4 &#8217;15:<\/strong><\/em> -4.1%<\/li>\n<li><em><strong>Q3 &#8217;15:<\/strong><\/em> -3.9%<\/li>\n<li><em><strong>Q2 &#8217;15:<\/strong><\/em> -3.4%<\/li>\n<li><em><strong>Q1 &#8217;15:<\/strong><\/em> -2.9%<\/li>\n<\/ul>\n<p>(Source: Factset&#8217;s Earnings Insight)<\/p>\n<p>Let&#8217;s see how Q3 &#8217;18 SP 500 revenue comes in &#8211; I would think a &#8220;greater than 10%&#8221; y\/y growth print for the benchmark means good things for the quarterly return.<\/p>\n<p>This is not a story that gets any coverage in the mainstream Financial media.<\/p>\n<p><em><strong>&#8220;Average&#8221; revenue growth by sector since Q1 &#8217;15:\u00a0<\/strong><\/em><\/p>\n<ul>\n<li><em><strong>Consumer Disc:<\/strong><\/em> +5.3%<\/li>\n<li><em><strong>Consumer Spls:<\/strong><\/em> +2.5%<\/li>\n<li><em><strong>Energy:<\/strong><\/em> -5.4%<\/li>\n<li><em><strong>Financials:<\/strong><\/em> +4%<\/li>\n<li><em><strong>Health Care:<\/strong> <\/em>+7.2%<\/li>\n<li><em><strong>Industrials:<\/strong><\/em> +1.5%<\/li>\n<li><em><strong>Basic Mat:<\/strong><\/em> +3.4%<\/li>\n<li><em><strong>Technology:<\/strong><\/em> +5.4%<\/li>\n<li><em><strong>Utilities:<\/strong><\/em> -0.7%<\/li>\n<li><em><strong>Real Estate:<\/strong><\/em> +7.5% (data for just the last 5 quarters though)<\/li>\n<\/ul>\n<p>Source: Factset revenue growth (actual) from Q2 &#8217;18, back through Q1 &#8217;15)<\/p>\n<p>Health Care is tops in terms of 14 quarter revenue growth, with Tech and Consumer Discretionary close behind. Both Energy and Industrials, saw negative revenue growth from Q1 &#8217;15 through Q2 &#8217;16 and then both sectors saw positive y\/y revenue growth as of the middle of 2016. Since Q2 &#8217;16, the Energy and Industrial sectors show sharply positive revenue growth.<\/p>\n<p>Can this help us guide us in terms of future sector returns ? Not always, but it&#8217;s a helpful start.<\/p>\n<p>Let&#8217;s see where Q3 &#8217;18 revenue growth comes in relative to the expected 7%.<\/p>\n<p>Thanks for reading&#8230;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here is a quick history of the SP 500&#8217;s y\/y revenue growth since early 2015: Q3 &#8217;18: +7.3% (est) Q2&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[114],"tags":[],"class_list":["post-8207","post","type-post","status-publish","format-standard","hentry","category-sp-500-revenue-growth"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8207","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8207"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8207\/revisions"}],"predecessor-version":[{"id":8211,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8207\/revisions\/8211"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8207"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8207"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8207"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}