- If the sell-side’s overall pessimism continues and the actual results beat the estimates to the degree that has been happening since Q2 ’20, then that bodes well for Q3 and Q4 ’21.
- The stock market is a discounting mechanism, so there could be a case made for the S&P 500 discounting today what S&P 500 earnings and revenue growth will look like in mid-2022.
- While it may seem to be a minor distinction for readers, there is a difference between the calendar-year estimate for the S&P 500 and what are called quarterly bottom-up estimates for each quarter of the calendar year.
For further details see:
S&P 500 Earnings Update: Pressure Emerges On Top-Down Calendar Year EPS Estimates