This may surprise you: Wall Street analysts expect earnings for the S&P 500 to increase 8% during 2023, despite all the buzz about a possible recession as the Federal Reserve tightens monetary policy to quell inflation.
The consensus among analysts polled by FactSet is for weighted aggregate earnings for the S&P 500 to total $238.23 a share in 2023, which would be an 8% increase from the current 2022 EPS estimate of $220.63. He went further, saying “things get really interesting at 3200 or 3300 on the S&P.” The S&P 500 closed at 3583.07 on Oct. 14, a decline of 24.8% for 2022, excluding dividends.
He expects “long-duration technology growth stocks” to lead the rally, because “they got hit first.” When asked if Nvidia Corp. NVDA, +2.23% and Advanced Micro Devices Inc. AMD, +1.82% were good examples, in light of the broad decline for semiconductor stocks and because both are held by the Buffalo Large Cap Fund, Laudan said: “They led us down and they will bounce first.”
Laudan also said he had been “overweight’ in UnitedHealth Group Inc. UNH, +2.47%, Danaher Corp. DHR, +0.62% and Linde PLC LIN, +2.16% recently and had taken advantage of the decline in Adobe Inc.’s ADBE, +1.32% price following the announcement of its $20 billion acquisition of Figma, by scooping up more shares.
Those sound like some awesome stock picks!
The bottom wont be here before end 2023