With our 90 day treadmill, aka earnings season, in the rear view mirror let’s take a quick look at the results.
Again according to Thomson Reuters, of the companies in the S&P 500, 75% beat analyst expectations by just over 6%.
Currently the S&P 500 is trading at a forward P/E multiple of approximately 14, with an expected growth rate of just under 18% over the next 12 months. As a reminder, the average forward multiple for the S&P 500 since it’s inception (1957) is about 15.
If companies deliver on their expected growth rates and the capital markets follow the approximate growth rate, a positive interim future may be in store for us as investors.
Tomorrow (March 9th, 2011) I will be traveling out-of-state for a quick trip, but will be back in the office bright and early Thursday morning. I will also be out a few days the week next week (March 14th, 2011) for spring break. I am always in contact with the office, so never hesitate to call.
Have a Good Day!