Wall Street's Accurate Earnings Forecasts Amid Price Target Discrepancies for 2024

Reported about 9 hours ago

As Wall Street strategists project stock market outlooks for 2025, they have successfully predicted 2024 S&P 500 earnings per share (EPS), estimating a midpoint of $240—remarkably close to actual outcomes. Despite their strong earnings projections, strategists have struggled with price targets due to varying assumptions about valuation multiples, with the forward price/earnings ratio rising unexpectedly. Overall, long-term investors should focus on the fundamentals driving earnings growth, which remain solid, while being mindful of potential short-term market risks.

Source: YAHOO

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