{"id":8505,"date":"2018-12-14T22:35:12","date_gmt":"2018-12-14T22:35:12","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=8505"},"modified":"2018-12-15T13:21:58","modified_gmt":"2018-12-15T13:21:58","slug":"updating-2019-earnings-for-top-10-sp-500-cos-and-top-10-financial-positions","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=8505","title":{"rendered":"Updating 2019 Earnings for Top 10 SP 500 Co’s and Top 10 Financial Positions"},"content":{"rendered":"
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Click to enhance \/ enlarge<\/figcaption><\/figure>\n

This was a relevant post by David Templeton of Horan Capital Advisors this week.<\/p>\n

I thought it was best addressed by doing a quick spreadsheet on updating the EPS estimates for the Top 10 Market Cap weights in the SP 500, and because Financials and Transports have endured a couple of brutal weeks, looking at the Top 9 Financial weights in the SP 500 and seeing how 2019 estimates have changed from a relative and absolute perspective.<\/p>\n

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Click to enhance \/ enlarge<\/figcaption><\/figure>\n

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This excel spreadsheet was an update of this original post<\/a>\u00a0in mid-November ’18 which looked at 2019 EPS trends for the top 10 weights in the SP 500.<\/p>\n

Facebook looks to have stabilized while Apple and Exxon have gotten worse meaning that the EPS estimates for Apple and Exxon have seen further negative revisions (probably a surprise to no one).<\/p>\n

Added to the spreadsheet was the Top 9 Financial weights in the SP 500 and what their estimates look like for 2019.<\/p>\n

Both the “estimate revision trend” and the absolute growth in 2019 for Financials look pretty good, in fact both are positive.<\/p>\n

Are the estimates wrong, and thus the analysts wrong, or does the market have it wrong ?<\/p>\n

Two great charts from Chris Kimble of Kimble Charting Solutions:<\/p>\n

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Click to enhance \/ enlarge<\/figcaption><\/figure>\n

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click to enhance \/ enlarge<\/figcaption><\/figure>\n

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These charts were published this week to show the precarious technical nature of the banks.<\/p>\n

Summary \/ conclusion: <\/strong><\/em>A year ago, the SP 500 was about to finish a year where the key benchmark returned 21%, and everyone seemed bullish. This year, just the opposite has happened, and the sentiment heading into year end ’18 is just awful.<\/p>\n

The Financial overweight was our worst call for clients this year. What banks do here into year-end, with the Fed expected to boost the fed funds rate another 25 basis points next week, moving fed funds to 2.50%.<\/p>\n

More to come tomorrow.<\/p>\n

Thanks for reading.<\/p>\n

 <\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

This was a relevant post by David Templeton of Horan Capital Advisors this week. I thought it was best addressed…<\/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":[213,84,53],"tags":[],"class_list":["post-8505","post","type-post","status-publish","format-standard","hentry","category-2019-sp-500-earnings","category-financial-sector","category-financials"],"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\/8505","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=8505"}],"version-history":[{"count":6,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8505\/revisions"}],"predecessor-version":[{"id":8515,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/8505\/revisions\/8515"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}