Q4 earnings beating estimates, with surprise factor above average, but stocks are expensive

From Investing.com: 2025-01-20 04:40:00

Q4 earnings season began with 21 companies reporting, mostly financials. 14 beat estimates, 6 missed, and 1 tied. The surprise factor averaged 6.4%. 8% of S&P 500 have reported, with an 81% beat rate and 10.6% earnings above expectations. Total earnings growth is +10.7%, with sales growth +4.1%. Forward EPS hit a record $273.18, trailing EPS $242.46. Expected growth rate +12.7%, reported growth rate +10.2%. Forward P/E ratio is 22x, 30% above historical average. Stocks are expensive compared to bonds. Majority of S&P 500 will report in 2-3 weeks. Good news may be priced in.



Read more at Investing.com: Q4 Earnings Beat Rate and Surprise Factor Well Above Average So Far