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.
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