Maybe Stock Valuations are Justified!
According to the WSJ today (7/31/17), 73% of the S&P 500 companies that have reported earnings for the second quarter have reported better than expected revenues. If that figure holds, it will be a record performance. The 5 year average is 53%. 57% of S&P 500 companies have reported so far.
Q2 revenue is growing at a rate of 5.2% vs. 7.7% for Q1 (the best quarter since 2012). Revenue beats are also by a wider margin than usual – 1.2% above analyst expectations vs. a 0.5% average over the past 5 years.
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