Stock Analysts Zig While the Fed Zags

The Federal Reserve and analysts just can’t seem to get on the same page.

Just as the central bank signaled its cautiousness about the economy, estimates of corporate profit growth for companies in the S&P 500, after falling for nearly all of this year, have suddenly begun to pick up. Analysts raised their earnings expectations to a collective $169.40 a share, Bloomberg reported on March 18, based on calculations for the next four quarters. The move isn’t big yet — it’s up just a dollar — but it could be the beginning of a trend. It was the first week-over-week earnings increase since November, according to Bloomberg data. Profit forecasts have dropped nearly 5 percent this year. Ed Yardeni, a popular strategist who watches earnings estimate trends closely, says earnings prospects bottomed three weeks ago and are now looking up. Based on his numbers, S&P 500 earnings expectation have moved to $172.19 a share, up from $171.37 in early February.