Update On Corporate Earnings And Revenue Growth
After seeing a fairly sharp decline from mid 2014 to end of 2015, it appears that corporate earnings are gaining momentum.
When compared to the price of the S&P 500, you can see the correlation.
I have often referred to the mid 2014 to end of 2015 time frame as a "stealth" bear market. We experienced a decline in earnings, however equity prices never reached bear market territory. It appears now, that corporate profits are back on track, which I view as positive.
This research material has been prepared by LPL Financial
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability. Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Any economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.
Indices are unmanaged index and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. Past performance is no guarantee of future results.
The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.