There are 2 ways to look at this chart:
1/ Mag7 outperformance is justified by positive earnings revision (vs. negative revision for the rest); 2/ The bar has been raised quite high for the Mag7 (so beware if they disappoint) while the bar is low for the other 493 stocks (there is room for positive surprise) Source: Bloomberg, RBC
2025 and 2026 look much better for US small caps earnings, relative to large caps
Source: JPM, RBC
The market is increasingly becoming more driven by earnings than multiples.
Source: BofA, Mike Zaccardi
As we get into the heat of EPS season...
DB notes that more companies have been beating and by a larger amount in recent quarters. If this continues, it is tough to bet against this market... Source: Deutsche Bank, RBC
The combined annual revenue of the 5 highest earnings 🇺🇸 companies is higher than the GDP of Brazil, Italy and Canada
Top 5 US companies based on Revenue (TTM) 🥇 Walmart $WMT: $657.3B 🥈 Amazon $AMZN: $590.7B 🥉 Berkshire Hathaway $BRK.B: $410.9B 4) Apple $AAPL: $381.6B 5) UnitedHealth $UNH: $379.5B Source: Evan
Q2 US earnings calendar by The Transcript
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Dot Com Bubble vs. Now - Things don't look similar - at least from an earnings angle
Source: Barchart, BofA
Here’s how many times the word “AI” has been said on the earnings calls of some of the biggest companies in the world
Source: Evan, Uptrends
