Wednesday, February 3, 2016

S&P earnings visual plus projected growth

The PE ratio for the S&P 500 based on the last 12 months earnings is 21.  That means the high growth in earnings is expected to continue.  That is what a high PE means.

Here is a visual of earnings growth projections from Yardeni Research, Inc.  It is the green bars on the right.  As you can see, the retrenchment in earning is projected to be over.  Good luck with that.        {click to make larger}

No comments:

Post a Comment