Truist Sees Room for Stock Optimism Despite Recent Pressures
The S&P 500 has a 19-times forward earnings multiple, while Truist points to corporate results and 2027 estimates.
Key takeaways
- Truist puts the S&P 500's forward price-to-earnings ratio at 19 times.
- Nike was the exception to a year of strong corporate earnings reports.
Three charts from Truist point to reasons for optimism on stocks, including an S&P 500 forward price-to-earnings ratio of 19 times. Index prices have remained roughly flat since June 2, according to Truist.
The charts also highlight strong corporate earnings reports, with Nike the exception, and solid-looking earnings estimates for 2027.
JPMorgan strategist Mislav Matejka said he expects the market to resume advancing after oil and interest-rate volatility subsides and September's weak seasonal pattern passes. He also pointed to likely strong third-quarter results in October, saying better performance from technology stocks would help.
This article was produced with the help of AI technology. Source: Yahoo Finance
