Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Stocks

S&P 500 2023 Q1 Earnings Show Improvement

by July 4, 2023
July 4, 2023
S&P 500 2023 Q1 Earnings Show Improvement

The following chart shows the normal value range of the S&P 500 Index, indicating where the S&P 500 would have to be in order to have an overvalued P/E of 20 (red line), a fairly valued P/E of 15 (blue line), or an undervalued P/E of 10 (green line). Annotations on the right side of the chart show where the range is projected to be based upon earnings estimates through 2024 Q1.

Historically, price has usually remained below the top of the normal value range (red line); however, since about 1998, it has not been uncommon for price to exceed normal overvalue levels, sometimes by a lot. The market has been mostly overvalued since 1992, and it has not been undervalued since 1984. We could say that this is the “new normal,” except that it isn’t normal by GAAP (Generally Accepted Accounting Principles) standards.

We use GAAP earnings as the basis for our analysis. The table below shows earnings projections through December 2023. Keep in mind that the P/E estimates are calculated based upon the S&P 500 close as of March 31, 2023. They will change daily depending on where the market goes from here. It is notable that the P/E is again outside the normal range.

The following table shows where the bands are projected be, based upon earnings estimates through 2024 Q1.

This DecisionPoint chart keeps track of S&P 500 fundamentals, P/E and yield, and it is updated daily — not that you need to watch it that closely, but it is up-to-date when you need it.

CONCLUSION: The market is still very overvalued and, with a P/E of 25.44, well above the normal range. Earnings have ticked up, breaking the down trend of the prior three quarters, and they are estimated to be higher for the next four quarters. Being overvalued doesn’t require an immediate decline to bring valuation back within the normal range, but high valuation applies negative pressure to the market environment.

Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!

(c) Copyright 2023 DecisionPoint.com

Technical Analysis is a windsock, not a crystal ball.

Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules0

0
FacebookTwitterGoogle +Pinterest
previous post
Biden blues? Confidence in US government lowest across G7 countries ahead of Independence Day: Poll
next post
Financing Lithium Projects Today Key for Energy Transition

Related Posts

Volatility Ahead: What Investors Need to Know Right...

April 1, 2025

Crypto Names Continue to Soar

July 7, 2023

Earnings Momentum May Push the Stock Market to...

July 28, 2023

S&P 500 Plunges Below 5K!

February 14, 2024

MEM TV: Tech Stocks Blast Higher! S&P 500...

January 22, 2024

Stock Market Shows Its Magic: An Exciting Finish

June 1, 2024

US Strikes Iran: What Comes Next For Stocks?

June 23, 2025

MEM TV: Don’t Miss These! TOP Sector and...

December 30, 2023

Navigating Uncertain Times: Market Recap with Mish Schneider

October 10, 2023

The Key to the August Breakouts

September 6, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • S&P 500 Breaking Out Again: What This Means for Your Portfolio

    • Laramide Identifies Targets for 15,000 Meter Drill Program at Kazakhstan Uranium Project

    • Coinbase Expands USDC Rewards to Canada

    • NVIDIA Facing Weak Demand for New Chip as Chinese Firms Turn to Homegrown Silicon

    • Newmont Withdraws from Mount Coolon Joint Venture, GBM Regains Full Ownership

    • Crypto Market Update: Bitcoin ETFs Log Biggest Inflows Since July

    Categories

    • Business (1,374)
    • Investing (2,910)
    • Politics (3,699)
    • Stocks (1,792)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved