“S&P 500 companies beat Capital IQ quarterly consensus forecasts 66% of the time since 2005, a reminder that Wall Street analysts tend to be more cautious with their forecasts than warranted. Yet we found that this conservatism has been even more prevalent for those companies that beat expectations by more than 10% (big beat) and less prevalent for those companies that missed by more than 10% (big miss) in the prior quarter,” notes S&P Capital IQ.
Financials, healthcare and consumer discretionary are the three sectors expected to post double-digit earnings growth this year. Those sectors combine for nearly 43% of EPS’s weight. S&P Capital IQ has an overweight rating on the $136.1 million ETF.
WisdomTree Earnings 500 Fund