A quick update on the S&P 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
- S&P 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 S&P 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 S&P 500 earnings growth rate for 2018 is 12%.
More to come all weekend.