Corporate profits are going to get 'better and better,' Credit Suisse's Jonathan Golub predicts as earnings season begins

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Corporate profits are going to get 'better and better,' Credit Suisse's Jonathan Golub predicts as earnings season begins (via TradingNation)

"In aggregate, they really crushed it," Golub said. "You're going to see the same thing, and you're seeing that in all kinds of capital market activity and trading activity — things related to interest income, and the like."

Overall, he believes Wall Street is too pessimistic on S&P 500 earnings growth this season. Refinitiv estimates it will fall by 10% in the fourth quarter. Meanwhile, Golub's forecast reflects a 4% dip in growth, and he's not ruling out a slight gain. In a recent earnings outlook note, Golub wrote: "Unusually robust analyst revisions points to further upside to corporate profits. Separately, history indicates that strong ISM readings, like last week's 60.7, is highly correlated with beats.", Golub had a more nuanced view. He wanted to wait for more clarity on policy under the Biden administration before making a major call.

 

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TradingNation I think you highly underestimate the power of legislation to slow that.

TradingNation No doubt some sectors are booming.

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