Earnings Season Is Here
Stocks are back at all-time highs and the economy is quickly improving, now comes first-quarter earnings season. This week on the LPL Market Signals podcast, Chief Market Strategist Ryan Detrick and Equity Strategist Jeff Buchbinder discuss why another very solid earnings season is on the horizon. With stocks up more than 80% from the lows last year, the bar is definitely set quite high, but corporate America will likely come through again.
Let’s Talk Earnings
Corporate America is poised for big earnings gains given strong economic growth, with recent positive trends in company guidance and analysts’ estimates signaling upside to expectations. The LPL Strategists explain why first quarter of 2021 could see a 30% year-over-year increase in S&P 500 earnings per share, the best in over a decade.
Are Things Too Good?
With soaring manufacturing and services data, the LPL Strategists discuss if things are actually too good. Don’t forget, a year ago things were very bad on the economy, yet it was a great buying opportunity for investors. The truth is the bar is set quite high, as nearly everyone expects a stronger economy the second half of the year. This could open the door to a well-deserved break or consolidation for stocks after historic gains the past year.
The Bull is Still Here
A solid first quarter for the S&P 500 Index could signal continued strength, as historically a gain between 5-10% in the first quarter has led to continued strength the rest of the year. The LPL Strategists called this the sweet spot, as larger gains tend to lead to more muted returns, while weak returns open the door for weak returns the rest of the year.
Tune in now
Listen to the entire podcast to get the LPL strategists’ views and insights on current market trends in the US and global economies. To listen to previous podcasts go to Market Signals podcast. You can subscribe to Market Signals on iTunes, Google Podcasts, or Spotify and find us on the LPL Research YouTube channel.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth in the podcast may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. All indexes are unmanaged and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
All index data is from FactSet.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This Research material was prepared by LPL Financial, LLC.
For Public Use — Tracking #: 1-05132204 (04/22)