And They’re Off! The 90 Day Treadmiller’s are Leaving the Gate

While Alcoa (AA) unofficially kicked off earnings season last week, the gates really open this week.

This Quarter, Q3,  the expected leaders of the pack in growth year over year for the latest quarter,  estimated by Thomson Reuters, for the S&P 500, is:

  • Energy ~ 48% (Wow; high expectations can be disappointing!)
  • Materials~ 24%
  • Consumer Discretionary/Luxury – 19%

The bottom sectors, which even carrying the lower expectations, are a mostly respectable:

  • Utilities ~ (4%) loss
  • Health ~4%
  • Telcom ~ 6%

Combining all 10 S&P Sectors sectors (link to a terrific cheat sheet), the expectations for growth is a very healthy 14% currently. Without further capital market appreciation, if managers connect on these estimates, capital market will become cheaper as measured by our old stand by gauge, the P/E ratio.

With the lines in the sand drawn and many companies to report, we will update you along the journey and give a final report in a couple of weeks after the grades have been tallied.

One unique item in this 90 day treadmill reporting period to remember.  The events across the pond may dominate much of the reporting at any given moment, even with the importance of these 90 day checkups.

Have a Great Day!

JK

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