Phone: 330.752.1547 | Map and Directions |
Key Takeaways
This Tuesday was National Scrabble Day! The timeless board game that is sold in more than 120 countries in nearly 30 languages revolves around forming words from a pre-determined pool of lettered tiles. As the game relates to our equity market outlook, the only word on our mind this week is earnings, since we have touted that earnings, rather than multiple expansion, would be critical in helping the S&P 500 score points this year. We’re hopeful the 1Q21 earnings season will be the first step toward achieving our 2021 earnings estimate of $190, which is not only above the consensus estimate of $175, but would also translate to the best year of earnings growth since 2010. At a minimum, strong earnings will be needed to support the second best start to a year (S&P 500: +11.5% YTD) since 1998. However, a more optimistic tone around earnings may serve as a bonus and upside to our base case, therefore we’ll spell out our expectations and dynamics to watch throughout earnings season.
All expressions of opinion reflect the judgment of Raymond James & Associates, Inc., and are subject to change. Information has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurate or that it provides a complete description of the securities, markets or developments mentioned. There is no assurance any of the trends mentioned will continue or that any of the forecasts mentioned will occur. Economic and market conditions are subject to change. Investing involves risk including the possible loss of capital. International investing involves additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. These risks are greater in emerging markets. Companies engaged in business related to a specific sector are subject to fierce competition and their products and services may be subject to rapid obsolescence. Past performance may not be indicative of future results.