About 10% of the S&P 500 will report next week, and 24 of those 52 scheduled reports will be Financial companies.
Here is the S&P 500 Earnings data by the numbers: (Source: IBES by Refinitiv)
- Fwd 4-qtr est: $174.68 vs. $174.87 from last week
- PE ratio: 17.25x
- PEG ratio: 2.45x
- S&P 500 earnings yield: +5.80% vs. +5.85% from last week
- Year-over-year growth of fwd estimate: +3.8% vs. last week’s 3.95%.
Taking a look at the expected sector growth rates for Q2 and Q3 ’19 S&P sectors, the Financial sector continues to show the best expected growth within the S&P 500 for Q2 ’19 and is only currently exceeded by the Consumer Discretionary sector for Q3 ’19.
Let’s see what the sector holds next week – like Rodney Dangerfield, Financials are getting no respect.
It’s a major overweight for clients, so naturally I want to do the homework on it.
Taking a last look at full-year 2019 “expected” growth rates, only Healthcare and Real Estate are showing fast growth rates today than on April 1. That’s important too; in a market and period where revisions are typically downward, watch for sectors that have positive (i.e., higher) revisions.
Financials and Consumer Discretionary look solid as well.
The earnings deluge starts next week.
Hope you find these insights helpful.
Thanks for reading.
Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.