S&P 500 earnings estimates make biggest jump in decades
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Earnings estimates for the S&P 500 Index have surged because of a “huge explosion” in profit at economically sensitive companies, according to Michael Purves, chief executive officer at Tallbacken Capital Advisors LLC. He cited the year-to-year change in forward earnings, based on profit projections for the next 12 months, in a report Monday. S&P 500 estimate increases surpassed 40% in May for the first time since at least 1990 and then stayed around that level, according to weekly data compiled by Bloomberg. “The earnings growth story into and through 2022 will continue to be robust,” Purves wrote.