S&P 500 firms set record for positive earnings guidance
Tax reform, improving global economy continue to fuel optimism
“Over the past several weeks, have S&P 500 companies been as optimistic as the industry analysts in terms of their annual EPS guidance for 2018?”
FactSet answers the question on Friday with some striking data.
The number of S&P 500 companies that have issued positive EPS guidance for 2018 since the beginning of this year is more than double the 10-year average.
In fact, John Butters writes, it is highest number of S&P 500 companies issuing positive EPS guidance for a year since FactSet began tracking the data more than 10 years ago.
There are several obvious reasons for the optimism, starting with the recently passed US tax reform legislation. By many accounts, the synchronized global economic recovery also looks to continue this year.