Hello Investors,
I hope you had a good earnings season.
Here are some of the key figures:
Performance
As of Q4 2024, with 62% of S&P 500 companies having reported actual results, 77% have surpassed EPS expectations, while 63% have exceeded revenue forecasts.
Growth
The blended year-over-year earnings growth rate for the S&P 500 stands at 16.4% for Q4 2024. If this figure holds, it will represent the highest annual earnings growth rate recorded since Q4 2021.
Earnings Revisions: At the start of the quarter on December 31, the projected earnings growth rate for the S&P 500 was 11.8%. However, thanks to stronger-than-expected EPS results, eight sectors have reported higher earnings than initially estimated.
Outlook
Looking ahead to Q1 2025, 34 S&P 500 companies have provided negative EPS guidance, while 21 have issued positive EPS forecasts. This is reflected in the historically high P/E ratio of Tech companies.
Valuation
The S&P 500’s forward 12-month price-to-earnings (P/E) ratio is currently 22.1, which exceeds both the 5-year average of 19.8 and the 10-year average of 18.2.
Strategy
My portfolio has seen no change reflecting these results. Valuations are still above their historical highs which is why I'm not deploying more capital right now. Valuations being high does not mean you sell, this bull market can continue for quite some time. Just keep some funds as balance to buy the inevitable dip! $AMZN (Amazon.com Inc) is looking like it's positioned well to benefit from automation, robotics and AI. How many times do you visit a store in constrast to how many times do you do your shopping online?
Take care.
Mathijs... Show More
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Fri Nov 14 2025 07:53:40 GMT+0000 (Coordinated Universal Time)
