Today kicks off December quarter earnings season with earnings for the S&P 500 expected to have declined by 2% in the December quarter according to FactSet. If earnings do in fact contract during the December quarter, it will be the fourth consecutive quarter of year-over-year net income declines for the S&P 500. Despite this, the index managed to make yet another new high as investors begin to focus on EPS growth prospects for the coming year; per FactSet the S&P 500 group of companies are expected to grow their collective EPS by 9.5% growth YoY in 2020. That rebound is expected to be led by the 4.7% YoY growth in earnings for the S&P 500 in the current quarter and strengthen throughout the year.
We’d note the S&P 500 is trading at a P/E ratio of…
- lululemon athletica (LULU) and Tesla (TSLA) are constituents in Tematica Research’s Cleaner Living Index.
- Microsoft (MSFT) is a constituent in Tematica Research’s Thematic Dividend All-Stars Index.