Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  S&P 500 Index Top-Line Growth Estimates
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 
View from the Observation Deck 
 
  1. Today's blog post provides investors with a three-year look into the expected revenue growth rates of the sectors that comprise the S&P 500 Index. 
  2. Here is a link to our last post on 7/13/17 (click here to view). With respect to the decline in the estimates for revenue growth in Telecomm. Services, we would like to note that only four companies comprise this sector index.
  3. On 9/25/17, the S&P 500 Index stood at 2,496.66, or 0.46% below its all-time high of 2,508.24, set on 9/20/17, according to Bloomberg. The current bull market in stocks is in its 9th year.
  4. For the market to trend higher, we believe that corporate earnings will need to grow, and perhaps the best catalyst for growing earnings is to increase revenues.
  5. As indicated in the table, as of 9/22/17, the estimated revenue growth rate for the S&P 500 Index for 2017 was 5.0%, according to Bloomberg. Estimates were in the vicinity of 5.00% for 2018 and 2019 as well.
  6. Energy has gone from a drag (2016) on the overall revenue growth of the S&P 500 Index to a contributor. If you were to exclude Energy in the S&P 500 Index's estimate for 2017, its 5.0% growth rate would drop to 4.1% (not shown in table). 
  7. Estimates for seven of the 11 major sectors that comprise the index reflect stronger potential y-o-y revenue growth in 2018. Six sectors have 2018 estimates in excess of 5.0%.
  8. With respect to 2019, two (Consumer Staples and Financials) of the 11 major sectors that comprise the index reflect stronger potential y-o-y revenue growth. Five sectors have 2019 estimates in excess of 5.0%.
  9. The forecast for revenue growth is encouraging, in our opinion.
This chart is for illustrative purposes only and not indicative of any actual investment. There can be no assurance that any of the projections cited will occur. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance, while the 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

To Download a PDF of this post, please click here.

Posted on Tuesday, September 26, 2017 @ 1:46 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
This Homebuilder Index Is Still Well Below Its All-Time High
S&P 500 Index’s Dividend Payout Still Trending Higher
Why the Market Continues to Go Up
The S&P 500 Index Just Set Another All-Time Closing High
A Snapshot Of Dividend-Payers & Non-Payers In The S&P 500 Index
S&P 500 Index Stock Prices Relative To Their 52-Week Highs
A Snapshot of Bond Valuations
How The S&P 500 Index Has Performed Since The Brexit Vote
Some Insight Into The S&P 500 Index Dividend Payout
A Case For Investing In Two Basic Necessities
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.