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 Index Earnings & Revenue Growth Rate Projections View
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. On 2/14/20, the S&P 500 Index closed the trading session at an all-time high of 3,380.16, according to Bloomberg. 
  2. For the market to trend higher, we believe that corporate earnings will need to grow, and perhaps the best catalyst for growing earnings is to increase revenues.
  3. From 1926-2019 (94 years), the S&P 500 Index posted an average annual total return of 10.20%, according to Morningstar/Ibbotson & Associates. 
  4. As indicated in the table, Bloomberg's 2020 and 2021 consensus year-over-year (y-o-y) earnings growth rate estimates for the index were 8.0% and 11.2%, respectively, as of 2/14/20. 
  5. Two of the 11 major sectors that comprise the index reflect a positive double-digit y-o-y earnings growth rate estimate for 2020, compared to seven in 2021. 
  6. Bloomberg's 2020 and 2021 consensus y-o-y revenue growth rate estimates for the S&P 500 Index were 4.7% and 5.0%, respectively, as of 2/14/20.
  7. Four of the 11 major sectors reflect y-o-y revenue growth rate estimates of 5.0% or more for 2020, compared to five for 2021. 
  8. The following is a breakdown of the quarterly earnings growth rate estimates for the S&P 500 Index through Q1'21 (not in table): 0.5% (Q1'20); 3.0% (Q2'20); 8.4% (Q3'20); 11.6% (Q4'20); and 12.7% (Q1'21), according to Bloomberg. 

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 an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector. 

Download a PDF of this post, please click here.
Posted on Tuesday, February 18, 2020 @ 1:10 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
A Snapshot Of Bond Valuations
How Bonds Have Fared Since 10/9/07
Technology Stocks Continue to Deliver Strong Returns for Investors
Many Investors Could Be Underweight Mid- & Small-Cap Stocks
Money Market Fund Assets At Highest Level Since 2009
Homebuilder-Related Stocks Still Below 2005 Historical Peak
Every Year Looks Volatile Compared To 2017
Going with the Flow. Does it Make Sense?
Passive vs. Active Fund Flows
The Only Constant Is Change
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.