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SMLL - The Negative EPS And Dividend Revision Cycle Has Only Just Begun
Direxion Daily Small Cap Bull 2X Shares
By Philip Lawlor, managing director, Global Markets Research
After some understandable hesitancy, analysts have taken an axe to their 2020 earnings forecasts, with widespread profit recessions now in prospect. Expectations for a robust EPS growth recovery this year - the consensus view only months ago - have now been pushed into next year, more a function of base effects than optimism.
Given the severity of the pandemic aftershocks, however, this negative revision cycle could well have some way to go.
Regional consensus EPS growth forecasts (%)
Source: FTSE Russell / Refinitiv. Data as of April