– During reporting season, S&P 500 Index earnings per share estimates for the next year rose 0.5%, reflecting generally upbeat guidance.
– Tax cuts help, but traditional drivers of earnings—notably business investment and manufacturing trends—also look good.
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Source:
LPL Research, FactSet 08/24/18
Important Disclosures:
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company’s profitability. Earnings per share is generally considered to be the single most important variable in determining a share’s price. It is also a major component used to calculate the price-to-earnings valuation ratio.
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The economic forecasts set forth in this material may not develop as predicted.
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