REUTERS/Brendan McDermidAnalysts are projecting that earnings for S&P 500 companies will rise 23% next year after falling more than 15% this year due to the coronavirus pandemic, according to IBES data from Refinitiv.
The S&P 500 is trading at 23 times expected earnings for the next four quarters, only slightly lower than its June peak of 25 times expected earnings - its highest in roughly two decades.
S&P 500 earnings growth estimates for 2021 have weakened from 28% on Oct. 1 to 22.5% as of Friday, based on Refinitiv’s data.
“A disconnect is starting to occur,” said Nick Raich, chief executive of The Earnings Scout, an independent research firm.
Analysts expect energy earnings to jump nearly 600% in 2021, while they project industrial earnings to climb 79%, based on Refinitiv’s data.
Brendan McDermid, ”, Nick Raich, Savita Subramanian, Jim Paulsen, Joe Biden’s, Biden
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