28 Οκτ 2018

S&P 500 earnings insight, source Factset

S&P 500

2018 Earnings Growth Estimate is 20%, But 2019 Earnings Growth Estimate is 10%

For the third quarter, companies are reporting earnings growth of 22.5% and revenue growth of 7.6%. While analysts currently expect earnings to grow at double-digit levels for Q4, they also expect more moderate growth in early 2019.

For Q4 2018, analysts are projecting earnings growth of 16.1% and revenue growth of 6.3%.

For CY 2018, analysts are projecting earnings growth of 20.5% and revenue growth of 8.2%.

For Q1 2019, analysts are projecting earnings growth of 6.5% and revenue growth of 6.6%.

For Q2 2019, analysts are projecting earnings growth of 6.8% and revenue growth of 5.1%.

For CY 2019, analysts are projecting earnings growth of 10.0% and revenue growth of 5.4%.

Valuation: Forward P/E Ratio is 15.5, above the 10-Year Average (14.5)



The forward 12-month P/E ratio is 15.5. This P/E ratio is below the 5-year average of 16.4, but above the 10-year average of 14.5. It is also below the forward 12-month P/E ratio of 16.8 recorded at the start of the fourth quarter (September 30).

Since the start of the fourth quarter, the price of the index has decreased by 7.2%, while the forward 12-month EPS estimate has increased by 0.8%.

At the sector level, the Consumer Discretionary (20.3) sector has the highest forward 12-month P/E ratio, while the Financials (11.3) sector has the lowest forward 12-month P/E ratio.