Wall Street Expects $115.28 for 2013 S&P 500 Earnings

I’m always a bit suspicious of analysts’ forecasts and I’m particularly leery of forecasts that go out too far in time. In the near-term, forecasts aren’t so bad. Of course, they’re much less important as well.

But now 2013 isn’t so far away. Wall Street currently expects the S&P 500 to earn $115.28 for next year. Below is a chart from S&P and it shows how much that forecast has fallen in recent months, although it has stabilized recently.

For this year, Wall Street expects earnings of $101.86. That’s down from $113 one year ago. Going by yesterday’s close, the S&P 500 is going for just 12.2 times next year’s earnings. Unless earnings suddenly plunge, I think the S&P 500 is very reasonably priced.

Posted by on August 10th, 2012 at 3:35 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.