S&P 500 Top-Line Growth Estimates (Updated)

 

View from the Observation Deck  

  1. The S&P 500 closed the trading session on 2/9/15 at 2046.74. It stood 2.1% below its all-time high of 2090.57 (12/29/14), according to Bloomberg.
  2. Of the 10 major sectors that comprise the S&P 500, the energy sector's forecast for revenue growth in 2015 clearly changed the most since 11/21/14 (see chart).
  3. The price of crude oil plunged from its 2014-high (6/20) of $107.26 per barrel to $52.67 on 2/9/15, according to Bloomberg. As a result, the downward revision to 2015's estimated revenue growth rate was substantial.
  4. As indicated in the chart, the estimated revenue growth rate for the S&P 500 for 2015 was 2.1%, as of 2/6/15. When you exclude Energy, however, the rate jumps to 5.2%, according to Bloomberg.
  5. The following sectors have higher 2015 and 2016 revenue growth rate estimates (as of 2/6/15) than the S&P 500: Consumer Discretionary, Health Care, Information Technology, and Telecommunication Services.

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 10 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

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Posted on Tuesday, February 10, 2015 @ 1:35 PM

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.