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Index IDEA: Taking a global view on corporate earnings

As passionate as global soccer (or futbol) fans are about the World Cup, corporate earnings season can ignite similar passions in the minds of investors.

As FTSE Russell congratulates France on its World Cup victory Sunday (and Croatia for its uplifting run to the final), we encourage investors to take a global perspective when evaluating investment opportunities. FTSE Russell recently analyzed consensus earnings growth forecasts across both US and international FTSE Russell indexes to see where the US currently sits along the spectrum of earnings growth expectations. 

Alec Young – managing director, global markets research, FTSE Russell

“Our analysis of 2018 and 2019 consensus earnings growth forecasts across major regions revealed the greatest analyst optimism for the US profit outlook, most notably for small caps. Specifically, the Russell 2000 Index constituents’ earnings are forecast to rise 43% and 27% in 2018 and 2019, respectively, compared to 23% and 10% consensus earnings growth forecasts for the large cap Russell 1000 Index constituents. By contrast, consensus earnings growth expectations are more modest internationally, with the FTSE World ex US Index constituents forecast to post 2018 and 2019 EPS growth of 8.7% and 7.8%, respectively. Among major overseas markets, the UK leads with 2018 consensus EPS forecasts of 10.6% while Japan trails with only 4.3%.”

 

 

 

For more information and insight on the global equity markets from FTSE Russell, go to the FTSE Russell website.

 

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