The Most Important Number of the Week Is $45.03
Despite recent market jitters and growth concerns, analysts have been boosting their corporate profit forecasts at a record pace.
Analysts are forecasting a banner earnings season.
Photographer: Busakorn Pongparnit/Moment RFThis past week was all about whether the “reflation trade” that underpinned the historic rally in equities from the early days of the pandemic is dead. If so, someone forgot to tell the Wall Street analysts whose job is to forecast corporate earnings.
The coming week marks the start of quarterly earnings season, when companies provide an update on their operations. First up are the big Wall Street banks including JPMorgan Chase & Co., Goldman Sachs Group Inc. and Citigroup Inc. That’s nice to know, but what you need to know is that analysts have been boosting their profit forecasts at a record pace. And they may still end up being too conservative.