Analysts Grow More Confident About Strength of Corporate Profits

Wall Street analysts are growing more optimistic about Corporate America’s bottom line, even as worries mount that the economy is on shaky footing and AI dominance is masking troubles beneath the surface.

Wall Street prognosticators have been busy this month ratcheting higher their expectations for profits, pushing a gauge tracked by Yardeni Research that measures net upward revisions relative to total estimate changes to its highest level in four years. The S&P 500’s net earnings revisions index, or NERI, climbed 0.6 percentage point in October, and has now risen five straight months from a 28-month low of -7.8% in May.