|2023/02/27 / Erste Group Research|
Small increase of global equities expected
By now, the reporting season in the US is well advanced. 80% of US companies have reported their 4Q results, with 73% of companies reporting higher-than-expected earnings/share. Overall 4Q earnings/share are down -4.7% (y/y) for US companies so far. A -5.4% (y/y) decline is expected in 1Q 2023 and a -3.4% (y/y) slowdown in 2Q. Positive earnings growth is then expected from 3Q (+3.3% y/y).
Full-year 2023 earnings growth is expected to be modest at +2.2% (y/y). The 12-month P/E ratio for the USA 500 index is 17.7x. This P/E ratio is below the 5-year average (18.5x) but above the 10-year average (17.2x). Due to the neutral valuation, only slightly positive earnings momentum and high interest rates, we expect only a small increase in the global equity index in the coming months.
TotalEnergies: improving earnings revisions for 2023. New rating.
Novo Nordisk: High sales growth in anti-obesity drugs.
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|Author||Erste Group Research|
|Product name||Recommendation List|
|Topic in focus||Equities|
|Economy in focus||Eurozone, Germany, Japan, United States|
|Currency in focus||Euro, US Dollar|
|Sector in focus||Automobiles & Parts, Banks, Basic Resources, Chemicals, Construction & Material, Financial Services, Food & Beverage, Health Care, Industrial Goods & Services, Insurance, Media, Oil & Gas, Personal & Household Goods, Retail, Technology, Telecommunications, Travel & Leisure, Utilities|
|Name||ISIN||# Erste Group products|
|Advanced Micro Devices||US0079031078||3|
|Amadeus IT Group||ES0109067019||0|
|Anheuser Busch Inbev||BE0974293251||1|
|Bank of America||US0605051046||0|
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