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
 

  A Snapshot Of Top-Line Growth Projections
Posted Under: Broader Stock Market
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. On 12/2/20, the S&P 500 Index closed the trading session at an all-time high of 3,669.01, according to Bloomberg. 
  2. 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.
  3. As indicated in the table, Bloomberg's 2020, 2021 and 2022 consensus year-over-year revenue growth rate estimates for the S&P 500 Index were -3.2%, 8.0% and 6.9%, respectively, as of 11/27/20. 
  4. Eight of the 11 major sectors reflect y-o-y revenue growth rate estimates of 5.0% or more for 2021, compared to seven for 2022. Only one sector projects higher than 5.0% for 2020. 
  5. Four sectors (Communication Services, Consumer Staples, Health Care and Information Technology) show positive estimates for all three years. 
  6. While the consensus y-o-y revenue growth rate estimate for the S&P 500 Index is slightly negative for Q4'20 (not shown in table), all four quarters in 2021 reflect upside. The following is a breakdown of those quarterly estimates through 2021: -0.9% (Q4'20); 2.9% (Q1'21); 12.9% (Q2'21); 7.0% (Q3'21); and 6.5% (Q4'21), according to Bloomberg. 

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 an unmanaged index of 500 stocks used to measure large-cap U.S. stock market performance. The 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector. 

Download a PDF of this post, please click here.
Posted on Thursday, December 3, 2020 @ 12:40 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
Homebuilder-Related Stocks Have Finally Surpassed Their 2005 Peak
Betas Can Help Match One’s Equity Holdings With One’s Risk Tolerance
A Snapshot Of The S&P 500 Index Earnings Beat Rate
A Snapshot Of The U.S. Dollar
Every Year Looks Volatile Compared To 2017
A Snapshot Of Gold, Silver And The Miners
Sector Performance Via Market Capitalization (Since Trump Was Elected)
Passive vs. Active Fund Flows
The Real Rate of Return on the 10-Year Treasury Note is Negative
A Snapshot of Growth vs. Value Investing
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.