U.S. Equities don’t Have a Performance Problem, They Have an Expectation Problem

Fynsa Analyzes Corporate Earnings in the U.S.

Date:

Autor: Funds Society

Despite the strong growth demonstrated by the Mag-7 companies this quarter and exceeding market expectations by 6% (vs. +11% on average over the last four quarters), this has not been rewarded by investors, as the prices of all the stocks—except Meta—fell by an average of 8%

Another risk factor is that the proportion of companies that have exceeded sales estimates has significantly decreased across the S&P 500