Late on Friday Goldman Sachs noted that “although S&P 500 firms posted much better-than-expected Q1 EPS growth of 11%, investors have been mauled by a 18% near-bear market plunge since the index peaked on January 3rd. We boost our 2022 EPS growth forecast to +8% (from +5) and maintain our 2023 growth estimate of 6%. Our sales, margin, and EPS estimates remain below bottom-up consensus. We cut our year-end target to 4,300 (from 4,700) to reflect higher interest rates and slower economic growth than we previously assumed. Our new baseline forecast assumes no recession and implies the P/E ends the year unchanged at 17x. A recession would see the index fall by 11% to 3,600 as the P/E drops to 15x. Focus on high vs. low margin growth stocks.”
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.Free Access
Sign up now for free access to this content.
Please enter your details below and select your areas of interest.
Why Subscribe to
MNI is the leading providerof news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.
Our credibilityfor delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.
We are facing technical issues, please contact our team.
Your request was sent sucessfully! Our team will contact you soon.