One of the most frequently cited risks to stocks in 2023 is ‘overstated’

This post was originally published on TKer.co

Stocks fell last week, with the S&P 500 declining 3.4%. The index is now up 9.9% from its October 12 closing low of 3,577.03 and down 17.9% from its January 3 closing high of 4,796.56.

Last week I published a roundup of Wall Street forecasters’ outlook for stocks in 2023.

In a nutshell, they were unusually bearish with more than half of them predicting the S&P 500 to close 2023 lower on the year.

One commonly cited risk was the expectation that estimates for earnings would be revised down further from current levels. (Yahoo Finance’s Myles Udland had a good discussion about this on Friday.) According to FactSet, analysts expect S&P 500 earnings to climb to $232 per share in 2023. Even after months of downward revisions, this figure is higher than all the estimates provided by the equity strategists cited by TKer.

Analysts have been cutting their earnings estimates for months. Some expect…

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