CHART OF THE DAY: Old Wall Forecasting → Very Confused

11/21/19 07:43AM EST

Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

CHART OF THE DAY: Old Wall Forecasting → Very Confused - 05.17.2017 economic data cartoon 2

But the Old Wall, in all of its forecasting glory, is confused on that front, very confused:

  1. As you can see in the Chart of The Day, Old Wall Consensus estimates imply EPS ramps to +4-5% in 1H of 2020
  2. I’m assuming that’s because they’re assuming the current guide downs on Q4 to -2% y/y is the “bottom”

Embedded in that Old Wall estimate of +4-5% EPS growth is SALES growth re-accelerating to +4-5% in 1H 2020. Do you know what SP500 SALES growth #slowed to in Q4 of 2015? A: down -4.0% year-over-year for SP500 companies in the aggregate.

CHART OF THE DAY: Old Wall Forecasting → Very Confused - Chart of the Day

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.