• Analysts downgraded the most stocks in June since 2017
On Wall Street, it’s not exactly a news bulletin when companies cut profit forecasts two weeks before earnings season. It makes it easier to clear a lowered bar, when results are released. Right now, though, something more worrisome may be at work.
More than 80% of S&P 500 companies that have revised their profit estimates one way or the other in the lead-up to reporting have slashed them, data compiled by Bloomberg show. Analysts are in on the action too, reducing company projections at the fastest pace in near three years.
“One of the things that investors seem to be overlooking is how poor the earnings environment is,” said David Spika, president of GuideStone Capital Management. “We’re so focused on monetary policy and this mythical China deal that we just don’t seem to be paying attention to earnings, which are really what should be driving stock prices.”
View the complete July 2 article by Sarah Ponczek on The Bloomberg News website here.