Opening Statement from the September 2021 Dividend Gems

Opening Statement from the September 2021 Dividend Gems

Originally published on September 18, 2021 (pre-market release)

Earnings

The trend in earnings beats and upward forward estimates continues its record run. With all companies in the S&P 500 Index having reported Q2 earnings, actual numbers are expected to come in at 91% earnings growth. Thus, this quarter will be the second highest growth rate in recent memory (Q4 2009: 109%). 

Based on current estimates, the full 2021 earnings growth estimate is around ***. Meanwhile, the forward P/E ratio is approximately ***.

If we extrapolate current earnings estimates while factoring in positive earnings momentum and the current earnings revision rate, and if we adjust for expected beats relative to changes in economic activity from Q3 and Q4 2020 to Q3 and Q4 2021, respectively, and if we assume that the delta variant will not lead to a major setback in the recovery process, we believe 2021 full year earnings growth *********************.