As a regular Bespoke follower and subscriber, the research service always has a knack of quantifying the important points in the market, and this post— copied on Friday and pasted from Twitter, articulates exactly what is going on within the S&P 500 right now.
Great Q1 ’18 earnings, poor response by the individual stocks themselves and the S&P 500.
Here is the weekly update of the Thomson Reuters IBES numbers:
- Fwd 4-Q est: $162.43
- P.E. ratio: 16.4x
- PEG ratio: 0.81x
- S&P 500 earnings yield: +6.08%
- Year-over-year growth of forward estimate: +20.29%
(Source: This Week in Earnings, dated 4/27/18)
Conclusion: Looking at S&P 500 “revisions” data, (not shown), 69% of analyst estimate changes were “positive this week” well ahead of the last few weeks. I will have a chart on this metric later this weekend, as a few other topics are examined.
Here is the 4-week change in the S&P 500 expected Q1 ’18’s earnings growth:
- 4/27/18: +24.6%
- 4/20/18: +20.0%
- 4/13/18: +18.6%
- 4/6/18: +18.4%
- 4/1/18: +18.5%
Here is the expected 4-week change in the S&P 500 expected Q2 ’18 earnings growth:
- 4/27/18: +19.6%
- 4/20/18: +19.8%
- 4/13/18: +19.8%
- 4/6/18: +19.7%
- 4/1/18: +19.8%
Q2 ’18’s expected earnings growth for the benchmark is rock solid – no downward revisions at all.
More to come this weekend on sectors, etc.