Sunday, August 08, 2010

Earnings In Q2 Still Strong, Forward PEG Less Than 1.0

Earnings for the S&P 500 Index in the second quarter continue to exceed expectations.

From HORAN Capital Advisors
According to Thomson,
  • Of the 443 companies in the S&P 500 that have reported earnings to date for Q2 2010, 75% have reported earnings above analyst expectations.
  • The blended earnings growth rate for the S&P 500 for Q2 2010 is 38%.
  • The forward four-quarter (Q3 2010 – Q2 2011) P/E ratio for the S&P 500 is 12.7, below the average forward four-quarter P/E ratio of the previous 52 weeks (14.2).
From HORAN Capital Advisors

The forward PE to earnings growth rate (PEG) for the S&P 500 Index is .77. This is arrived at by calculating the earnings growth rate from CY 2010 to CY 2011 and dividing the result into the estimated CY 2011 P/E of 11.7.

No comments :