2017 & 2018 Earnings Snapshot

 
View from the Observation Deck 

  1. Today's blog features corporate earnings projections for 2017 and 2018. We provide updates on an ongoing basis.
  2. The 75.56% plunge in the price of crude oil from the close of 6/20/14 through 2/11/16 resulted in a sharp decline in the earnings of energy-related companies in 2016. The 82.11% rise in the price of crude oil from the close of 2/11/16 through 3/27/17, however, projects to a triple-digit rise in earnings in 2017 (see chart). 
  3. With respect to the 2017 earnings growth rate estimates, the indices in the chart with positive double-digit or higher projections are as follows (Highest-Lowest): S&P 500 Energy; MSCI Europe; MSCI World (ex U.S.); S&P 500 Information Technology; S&P SmallCap 600; Nikkei 225; MSCI Emerging Markets; S&P 500 Health Care; S&P MidCap 400; S&P 500 Telecom. Services; S&P 100; S&P 500; S&P 500 Real Estate; and S&P 500 Financials.
  4. With respect to the 2018 earnings growth rate estimates, the indices in the chart with positive double-digit projections are as follows (Highest-Lowest): S&P 500 Energy; S&P SmallCap 600; S&P MidCap 400; S&P 500 Industrials; S&P 500 Financials; S&P 500 Consumer Discretionary; S&P 500; S&P 500 Information Technology; S&P 100; MSCI Emerging Markets; S&P 500 Materials; and S&P 500 Real Estate.
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. There can be no assurance that any of the projections cited will occur. 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. The S&P 100 Index is a capitalization-weighted index based on 100 highly capitalized stocks selected from the S&P 500 for which options are listed. The S&P MidCap 400 Index is a capitalization-weighted index that tracks the mid-range sector of the U.S. stock market. The S&P Small Cap 600 Index is a capitalization-weighted index that tracks U.S. stocks with a small market capitalization. The MSCI World (ex-U.S.) Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets excluding the U.S. The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Europe Index is a free-float weighted index designed to measure the performance of the developed equity markets in Europe. The Nikkei 225 Index is a price-weighted average of 225 top-rated Japanese companies listed in the First Section of the Tokyo Stock Exchange.

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Posted on Tuesday, March 28, 2017 @ 2:23 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.