European Earnings Estimates Up Again

While being generally constructive on global equity markets in the intermediate-term, even I am blown away by how European Earnings estimates continue to tick up in the last few weeks. Last week we put out the forward earnings estimates for the Stoxx 600 and I received many surprised comments/feedback from members. 

In the past week here’s how estimates have moved:

Q4: 10.7% to 10.8%

Q1: 16.5% to 16.7%

Q2: 8.6% remains at 8.6%

Q3: 15.7% to 16.1%

These are huge numbers.  Even if you cut them in half, the growth rate for the Stoxx 600 (Europe) looks compelling in the intermediate-term.  Looking at sentiment and price behavior, the realization of 50% of these estimates is not priced in at present.

Disclaimer: Not investment advice. For educational purposes only:

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