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DE | Weekly | Global Markets | Earnings, Earnings, Earnings! – 09/10/21
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It’s Earnings, Earnings, Earnings!
Spectacular growth in earnings this year, surprising and unprecedented, after the biggest economic downturn ever, has driven the U.S. Equity Market to new highs, again-and-again-and-again, projected by Decision Economics, Inc. (DE) all year, with yet more-to-come still the DE forecast.
The astounding results for Company Earnings in Q1 and Q2, likely to continue, albeit at a diminishing pace, have brought repeated increases to DE’s projections of Forward Earnings, led to repeated new highs and hikes in estimated Fair Value for the S&P500, Fair Value ranges, and upside potential.
Pre-Q2 Earnings season, the Consensus Forecast was plus 63% YoY; DE’s was 75%. The result appears to be 87% YoY.
This spectacularly strong earnings upturn, the growth of which certainly will diminish in coming quarters, nevertheless raises the levels of earnings now and going forward. And that, given the same P/E Multiple on Forward Earnings and passage of time, raises Fair Value.