[Jefferies Data: S&P 500 Index Component Earnings Growth May Accelerate Year by Year by the End of 2027]
Data compiled by Jefferies indicates that bottom-up target prices aggregated by sell-side analysts suggest that the earnings growth of S&P 500 index component companies will accelerate year by year through the end of 2027. Over the next three years, earnings are expected to achieve double-digit growth consecutively, a scenario historically aligned with above-average returns for the S&P 500 index. Despite concerns about excessive market concentration and overvaluation, the robust corporate earnings, a key pillar supporting the three-year bull market in equities, remain solid.