Discover the top contributors and potential drags on earnings growth

  • The top 10 stocks are expected to drive nearly half of the projected index earnings growth for the S&P 500 next year
  • Merck and Nvidia are expected to be the most important contributors to next year’s earnings growth
  • Pfizer, after a down year, is also high up on the list
  • The top 10 stocks collectively account for 5.1 percentage points of next year’s EPS growth estimate
  • The bottom 10 stocks imply a 1% drag on index earnings growth next year

In a simplified view, the stock market is driven by earnings and the multiple investors assign to them. Citi’s analysis reveals that the top 10 stocks are expected to play a significant role in driving the bulk of earnings growth for the S&P 500 next year. Merck and Nvidia are projected to be the most important contributors, while Pfizer, after a challenging year, is also high up on the list. These top 10 stocks collectively account for 5.1 percentage points of next year’s EPS growth estimate. On the other hand, the bottom 10 stocks are expected to have a 1% drag on index earnings growth. It’s crucial to monitor the earnings expectations of these companies throughout the year to gauge the market’s trajectory.

Public Companies: Merck & Co. (MRK), Nvidia (NVDA), Alphabet (GOOGL), Pfizer (PFE), Amazon.com (AMZN), Meta Platforms (META), Micron Technology (MU), Boeing (BA), Microsoft (MSFT), Apple (AAPL)
Private Companies:
Key People:

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Factuality Level: 7
Justification: The article provides analysis and projections on the expected earnings growth of companies in the S&P 500. It cites Citi as the source of the analysis and includes a table showing the contribution of each company to earnings growth. The information provided is specific and based on data from Citi, which adds credibility to the analysis. However, the article does not provide any counterarguments or alternative perspectives, which could limit its overall factuality.

Noise Level: 3
Justification: The article provides a straightforward analysis of which companies are expected to drive earnings growth next year for the S&P 500. It includes a table showing the contribution of each company to earnings growth. However, the article contains some filler content, such as the mention of text-to-speech technology and the request for feedback.

Financial Relevance: Yes
Financial Markets Impacted: The article provides analysis on the expected earnings growth of companies in the S&P 500 index, which can impact the stock market and investor sentiment.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the earnings growth projections for companies in the S&P 500 index, which is relevant to financial markets and investors.

Reported publicly: www.marketwatch.com