EPS Growth – Political Party and S&P 500 Profits Cycle While election results can impact markets in the short term, the underlying profitability of companies is a stronger driver of stock prices over time. Image: BofA US Equity & US Quant Strategy
S&P 500 Net Profit Margin The anticipated expansion in S&P 500 net profit margins over the upcoming quarters suggests a potentially favorable outlook for profitability. Image: Goldman Sachs Global Investment Research
Share of U.S. Corporate Profits from Foreign Markets Foreign markets, including emerging markets, significantly contribute to the profits of U.S. corporations. Specifically, they account for 16% of U.S. corporate profits, with emerging markets making up 4% of these profits. Image: Goldman Sachs Global Investment Research
Cumulative Change in Real S&P 500 and Real Profits The widening gap between the real S&P 500 and real profits is raising concerns about the possibility of a new bubble forming in the stock market. Image: Real Investment Advice
S&P 500 Net Profit Margin and Info Tech and Communication Services Margins The “tech” sector continues to sustain high profit margins in comparison to other industries, highlighting its robustness and resilience in the ever-evolving market landscape. Image: Goldman Sachs Global Investment Research
FMS Investors – Net % Say Global Profits Will Improve vs. ISM Manufacturing New Orders/Inventories There is a growing belief among FMS investors that global profits will improve in the future, which is encouraging. Image: BofA Global Fund Manager Survey
FMS Investors and Profit Expectations FMS global profit expectations are now more optimistic than they have been since February 2022. Image: BofA Global Fund Manager Survey
MSCI All Countries vs. Median Profit Margin All Countries Will global corporate profitability improve in the coming quarters? Image: Topdown Charts
S&P 500 Profit Margin – Operating Earnings/Sales S&P 500 profit margins remain strong at 11.2%, despite many headwinds and higher labor costs. Image: J.P. Morgan Asset Management
U.S. PPI Less U.S. CPI vs. S&P 500 12-Month Forward Profit Margin Are margins at risk, as they tend to be correlated with the spread between PPI and CPI? Image: Morgan Stanley Wealth Management
ISM Composite Index vs. Corporate Profits The decline in the ISM Composite Index indicates a weakening of the U.S. economy, which could lead to lower corporate profits. Image: Merrill Lynch Wealth Management