Home > Boards > Free Zone > All Trading - Technical > Market Direction and Stock Trends

A very expensive earnings season

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
DiscoverGold Member Profile
Member Level 
Followed By 574
Posts 77,900
Boards Moderated 44
Alias Born 03/10/04
160x600 placeholder
STOXX Europe 600 Index Ends 0.19% Lower at 462.42 -- Data Talk
The STOXX Europe 600 Index is down 0.87 point or 0.19% today to 462.42 --Down for two consecutive trading days
FTSE 100 Index Ends 0.17% Higher at 7063.40 -- Data Talk
DAX Ends 0.27% Higher at 15573.88 -- Data Talk
CAC 40 Index Ends 0.19% Higher at 6650.91 -- Data Talk
STOXX Europe 50 Index Ends 0.08% Lower at 3547.57 -- Data Talk
EURO STOXX 50 Index Ends 0.17% Higher at 4165.48 -- Data Talk
FTSE 100 Gets Boost From Energy Stocks
TotalEnergies Expects Global Oil Demand to Plateau Before 2030
Petrofac Sentencing Hearing for Bribery Delayed to End of Week
NASA Pact Launches Red Cat Shares Up Nearly 70%
French Court to Rule on UBS Tax-Evasion Case in December
Texas Factory Output Picked Up Steam in September -- Dallas Fed
Top Company News of the Day
YouTube TV Could Lose NBCUniversal Programming If Deal Isn't Reached by Thursday
UK Watchdog Won't Refer Facebook's Planned Kustomer Buy for Further Review
FTSE 100 Flat, Oil Majors Rise as Supply Jitters Boost Crude Prices
Durable Goods Orders Rise Sharply in August Despite Continued Supply Constraints
Ultragenyx, GeneTx: FDA Removes Hold Study of GTX-102 in Angelman Syndrome
Blackstone to Sell The Cosmopolitan of Las Vegas for $5.65 Billion
Lockheed Martin, Pentagon Agree to F-35 Production Rebaseline
Shell Energy Takes 255,000 Customers of Collapsed UK Retailer
Bristol Myers Squibb: FDA to Review Opdivo Combos in Esophageal Squamous Cell Carcinoma
Merck Says Keytruda Liver Cancer Study Meets Objective
BASF's Zhanjiang Site Seen Generating Up to $5 Billion in Annual Sales
FTSE 100 Rises, Supply Constraints Could Hit Pound
Stocks Rise, Oil Prices Near Three-Year High
Vonovia Secures 50.49% Stake in Deutsche Wohnen -- Update
DiscoverGold Member Level  Wednesday, 04/14/21 11:36:42 AM
Re: None
Post # of 39676 
A very expensive earnings season
By: SentimenTrader | April 14, 2021

As we head into Q1 earnings reporting season, expectations are high and stocks are expensive. Wall Street, and the investors that rely on their analysis, are gearing up for blockbuster performances.

At the start of the last 282 earnings seasons, dating back to 1950, the average Shiller PE ratio for the S&P 500 was 19.3. This season, its valuation is nearly twice that, above 37.0.

The histogram below shows the distribution of valuation ratios on days when earnings season began for any quarter since 1950.

It's not a shocker that stocks are expensive, just as we head into the period that investors will be most focused on the denominator of that equation. But using valuation for short-term guidance like a single earnings season is iffy, and indeed there has been only a slight negative correlation.

There have been 16 Q1 earnings seasons when the Shiller PE was 25 or higher, and the S&P's returns during those earnings seasons was well below the average return during other seasons.

Read Full Story »»»


Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
• DiscoverGold
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences