By Brian Demain, CFA, and Philip Cody Wheaton, CFA
Portfolio Managers Brian Demain and Cody Wheaton share their insights on the headwinds driving margin compression and what it could mean for stocks.
As a new earnings season kicks off, U.S. companies face a fresh challenge to earnings growth: peak margins.
For the past two years, expanding profit margins have helped companies boost earnings - and ultimately, share prices - even though economic growth was often subpar. But many factors that drove margin expansion are now reversing. Going forward, we believe companies' ability to navigate new