Earnings forecasts suddenly stopped to surge
Investors are watching very carefully the earnings estimates as we are approaching the end of the third quarter, not only for the third but also for the forth quarter, for clues for how stocks will trade in the final months of this year.
With S&P 500 trading at 19.9x 2022 EPS (5.0% earnings yield) vs a 10-yr TY at 1.32%, implying a +3.7pp equity yield advantage (cheapest 1/3 since 1977), with huge fiscal and monetary stimulus, and covid cases in retreat, there’s no doubt in my mind that equities are going higher. pic.twitter.com/dbQqi2n6Aa— Gary Black (@garyblack00) September 21, 2021
The earnings estimates have been aggressively rising this year, as of today they are expected to grow over almost 50%!
Happy Tuesday!— Jesse Cohen (@JesseCohenInv) September 21, 2021
*Here Are My #Top5ThingsToKnowToday:
- U.S. Stock Futures Rebound
- Fed Kicks Off Policy Meeting
- China Evergrande Crisis In Focus
- U.S. Housing Data
- $FDX $ADBE $SFIX Earnings
*May The Trading Gods Be With You 🙏$DIA $SPY $QQQ $IWM $VIX pic.twitter.com/dGpPv5lpKV
The actual earnings reports have beaten the analysts estimations by very large margins so far, forcing future estimates to be revised higher.
Key to watch moving forward (especially when earnings season begins) is profit margins … estimated forward operating margins have flatlined of late but thus far are not signaling any imminent danger— Liz Ann Sonders (@LizAnnSonders) September 16, 2021
But lately the earnings forecasts suddenly stopped to surge as the market players are waiting for the Fed's hints. FedEx and Adobe are set to report earnings after the bell today.
🇺🇸EARNINGS THIS WEEK:— Investing.com (@Investingcom) September 19, 2021
👉 https://t.co/vxg9zfWQw4$DIA $SPY $QQQ pic.twitter.com/y9YpxvIqZj