According to Goldman Sachs Bank, the S&P 500 index businesses’ profit projections have been cut annually through 2024 since the third quarter’s declining margins portend further suffering.
“We believe that the S&P 500 margins have been reflected in a decrease, and our estimates have been reduced to integrate more shrinkage into the margin,” Strategic Experts at Goldman Sachs, including David J, Costin, said in a recent research note.
With the exception of energy, he continued, we anticipate that the SS and B500 margins will contract by 86 basis points in 2022 and 50 basis points in 2023, returning to the pre-pandemic level of 11.3% in 2019.
According to Costin, the first margin contraction since the outbreak was observed in the quarter that ended in September. This is significant for projections, particularly for the coming year, and they are now anticipating earnings to remain fixed in 2023 as opposed to growing by 3% earlier.
Goldman Bank’s strategy has reduced profit estimates for this year to $ 224 from $ 226 for the next year to $ 224 from $ 234 and 2024 to $ 237 from $ 243, and the review includes an annual growth of 7%, 0% and 5%, respectively, for the main standard.
The S&P 500 index is predicted to decline by 4.5% by the end of this year, despite the strategists’ targets for the years 2022, 2023, and 2024 being unchanged at 3600 and 4000, respectively.
The strategists noted that discounts were included in the projections for 2023, but there are still additional risks because the S&P 500 index’s share profits might fall another 11% during a recession.
Goldman lowers his projections for S&B 500 businesses’ earnings
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