Unveiling the Future: The Rise of S&P 500 EPS in 2025
In a recent CNBC interview, Tom Lee of FundStrat Insight made a bold prediction about the full-year 2025 S&P 500 EPS, estimating it to be between $260 and $280. This projection is based on the upward trend in 2025’s EPS estimates over the past five months, a stark contrast to the negative revisions seen in 2024 and 2026.
Here’s a breakdown of the latest S&P 500 data:
– The forward 4-quarter estimate (FFQE) has risen for the second consecutive week to $259.74.
– The PE on the FFQE stands at 21.75x, showcasing a steady increase.
– The S&P 500 earnings yield has dipped slightly to 4.60%.
– Both S&P 500 EPS and revenue “upside surprise” remain consistent at 4.7% and 1.1%, respectively.
The technology sector is also showing positive signs in forward earnings estimates, despite stagnant stock performance. As we head into the final months of 2024, it’s crucial to pay attention to these indicators and trends.
The recent 3% GDP growth and robust consumption figures signal a healthy economy, but the Fed’s focus seems to be shifting towards job market concerns leading up to the Presidential election. With the August jobs report projecting a modest increase in new jobs, it’s clear that economic stability remains a top priority.
While these insights are not financial advice, they serve as valuable indicators for investors to assess their risk tolerance and adjust their portfolios accordingly. Stay tuned for more updates and analysis in the coming days.