Stock market racing to price in a ‘lost year’ for corporate profits
Mr. Market is trying to price in the earnings power of corporate America in a Trump tariff era that may be defined by slow growth and higher inflation.
It’s largely coming up empty so far, but pros say one conclusion could be made.
Current profit estimates for the S&P 500 (^GSPC) are basically useless.
“Our assumption is one full year of EPS growth has been lost,” Trivariate Research founder and CEO Adam Parker wrote in a new note on Monday. Parker — who held the chief US equity strategist role at Sanford Bernstein and Morgan Stanley — thinks it will be a “lost year” for corporate earnings.
The current bottom-up consensus earnings per share (EPS) expectation on the S&P 500 is $268.70. That estimates a 9.6% year-over-year…
