Stock prices keep going up, but earnings are failing to keep pace

Of course, it is typical for analysts to overestimate earnings gains and see them come in lower as we get closer to the quarter that is being examined.

What is not typical is to have this happen with the markets at historic highs: The S&P rallied 12% in the fourth quarter on expectations earnings would be higher in 2020. The trend for the companies reporting early for the fourth quarter — which includes notable disappointments from Federal Express, Micron, and Bed Bath & Beyond — is somewhat worrisome, said Nick Raich of the Earnings Scout.

"Given the EPS estimate revision trends of the early 4Q 2019 reporters, it is likely a vast majority of S&P 500 companies will be lowering their 2020 EPS estimates," he said.On Jan. 1, 2019, stocks were cheap at 13.9 times forward earnings for the S&P 500, well below the historic norm of roughly 16. On Jan. 1, 2020, it was at 18.0, and today it is at 18.4, the higher end of its range in the last 20 years.

😔

So now we are in the “WW3 didn’t start and the strait of Hormuz didn’t close” phase of the rally?

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Next market crash: JPMorgan's top defensive sector, stock picks to buy - Business InsiderJPMorgan's equity chief explains why an unloved corner of the market has become your best defense against a crash — and lists the group's 10 best stocks to buy
Source: BusinessInsider - 🏆 729. / 51 Read more »

Here’s Why The Stock Market Hit New Record Highs After Trump’s Comments On IranHere’s why the stock market hit new record highs after Trump’s comments on Iran: by skleb1234 skleb1234 Why doesn't Forbes report on a trillion dollar deficit in good economic times. Trump is responsible for this unnecessary debt. Report on that. skleb1234 Trump continues to surprise even the Americans.. May long lasting peace prevails. skleb1234 Feasible Answer!
Source: Forbes - 🏆 394. / 53 Read more »

U.S. SEC proposes governance changes for stock market data feedsThe U.S. Securities and Exchange Commission on Wednesday took the first step in ... We just need new government then u won’t need all those changes. Trump tweet drive the market. Nobody cares about data anymore. Owh yeah, I wanted to know the data feeds to build an automated model to see whether I can do the prediction. But I can't find any that is free. Even the Malaysian one was too expensive to get. Gave up. Did what I could do. Sit and tweet.
Source: Reuters - 🏆 2. / 97 Read more »