Earnings Sentiment Broadens Out

About this episode

The episode discusses the broadening improvement in earnings sentiment within the equity market and its implications for Growth leadership and stock market optimism.

The big things you need to know: First, earnings sentiment (the rate of upward EPS estimate revisions) is now improving broadly within the equity market, which we think opens the door for a short-term pause in mega cap Growth leadership within the US and US leadership within global developed markets equities. Second, the Growth/Value trade within Large Cap has turned choppy again, which we think may reflect the broadening out of improving earnings sentiment and valuations that have started to look frothy for mega cap Growth on some metrics. Third, stock market optimism improved in the latest Conference Board survey, a bright spot in the consumer narrative and a data point that alleviates some of our near-term pullback concerns.

Topics covered

• earnings sentiment
• equity market
• Growth/Value trade
• stock market optimism
• consumer narrative

Keywords

• earnings sentiment
• EPS estimate revisions
• Growth leadership
• Value trade
• stock market optimism
• Conference Board survey

Mentioned in this episode

Organizations: RBC Capital Markets, Conference Board

Places: US, global developed markets, Large Cap, mega cap Growth

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