While it’s relatively early into earnings season, there are some reassuring signs for stocks. Nearly 80% of companies have beaten earnings estimates while more than 60% have topped sales estimates.
As it now stands, equities still look appealing on a relative basis (vs. bonds). The earnings yield* on the S&P 500 remains well above average versus 10-year Treasury notes.
*Definition of Earnings Yield = A security’s earnings divided by its market price.
Disclosure: This Commentary represents a review of topics of possible interest to Pennsylvania Trust’s clients and is not personalized investment advice. It contains Pennsylvania Trust’s opinions, which may change following the date of publication. Information obtained from third-party sources is assumed to be reliable but is not guaranteed. No outcome – including performance – is guaranteed, due to various uncertainties and risks. This document is not a recommendation of any particular investment. Investment decisions for clients are made on an individualized basis and may be different from what is expressed here. Past performance is no guarantee of future results.