Investors Too Worried About Profit Outlook, Goldman Strategists Say
- Profit estimates for 4Q have dropped 4% since start of October
- Strategists expect stronger-than-expected EPS in 2024
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Investors are overly concerned about the weakening outlook for US corporate earnings, which so far merely track a historical pattern, according to Goldman Sachs Group Inc. strategists.
Estimates for fourth quarter profits have dropped by 4% since the start of October and are setting a low bar for S&P 500 companies, David Kostin and his colleagues wrote. Expectations for 2024 are also following a typical pattern and only dipped 0.4% once health care — the significant drag — is excluded, they said.