Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  S&P 500 Top-Line Growth Estimates
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 
View from the Observation Deck 
  1. Today's blog post is intended to supplement our post from 2/20/14 ("S&P 500 Earnings Beat Rate On The Mark For Q4'13").
  2. In that post we noted that 66.5% of S&P 500 companies, on average, had beaten their quarterly earnings estimates since Q3'11.
  3. Nearly two out of every three S&P 500 companies has managed to top analysts' quarterly forecasts, in part, by cutting costs, such as labor, and boosting productivity via the implementation of cutting-edge technology. 
  4. Whenever stock indices are trading at or near their all-time highs, like the S&P 500 is today, it becomes harder to make an argument for higher stock prices if earnings plateau, in our opinion.
  5. With the bulk of the cost-cutting measures likely behind us, we expect investors will soon look beyond the earnings beat rate, if they haven't already, to revenue growth ("Top-Line").
  6. The good news is that revenue growth estimates (see chart) for the S&P 500 look encouraging through 2016.
This chart is for illustrative purposes only and not indicative of any actual investment. There can be no assurance that any of the projections cited will occur. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance, while the 10 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

To Download a PDF of this post, please click here.
Posted on Tuesday, March 18, 2014 @ 3:03 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Individual versus Institutional Investors
I’ll Just Have Water, Thank You
Passive Investment Vehicles Continue To Post Big Gains In Asset Growth
Happy 5th Anniversary to the Bull Market
Corporations Expected To Grow Earnings Through 2015
A Report Card On Risks
Let’s Wind The Clock Back To 1981
The S&P 500 Still Mending The Fallout
S&P 500 Earnings Beat Rate On The Mark For Q4’13
Now Don't Be Sad Two Out of Three's Not Bad
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.