Pretty decent earnings growth
The consensus numbers for earnings growth for the US different indices are pretty decent.
Source: FactSet
Best, broadest revisions in several years
Jefferies: “….some of the best, broadest revisions we have seen for several years, as we show below. Not only are EPS revisions for all three indexes (SPX, NDX, RTY) resurgent in recent weeks, but they are also all >1 at the same time for the first time in 18mo. This may bode well for both upside and market breadth.”
Source: Jefferies
Rebounding
Morgan Stanley: “Earnings revisions breadth is rebounding; a constructive sign.”
Source: Morgan Stanley
US the place to be
US GDP growth outperformance relative to DM peers should resume over 2026 and 2027.
Source: Morgan Stanley
After some adjustments…
After adjusting for profit margins, valuations look much more reasonable.
