Credit Suisse Sees Rays of Earnings Light in S&P 500 Forecasts
- Share of companies raising guidance near 12-year high
- Bank of America finds investors rewarding stocks that do so
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For all the fretting about the recession in U.S. corporate profits, second-quarter results are providing at least one reason for optimism, according to Credit Suisse Group AG. It’s the number of companies raising forecasts for coming quarters, a ratio that has jumped toward a 12-year high.
Nearly 90 percent of companies in the S&P 500 Index that have changed previously disclosed expectations for future earnings have raised the target, among those that reported results between June 1 and July 21, according to data compiled by the bank. That’s the highest since 2010 and near the upper end of a range dating back to December 2003, analysts led by Chief U.S. Equity Strategist Lori Calvasina wrote in a report on July 22.