World's Best Investment Manager Reveals: S&P 500 Earnings Growth Forecast for 2025
As we enter the second half of 2024, market participants are reevaluating their expectations for earnings growth not just for this year, but also for 2025. Analysts on Wall Street are predicting a robust 14.5% earnings-per-share (EPS) growth for S&P 500 companies in 2025, following an anticipated 10.6% growth for this year.
Yardeni Research analysts highlight that all 11 sectors of the S&P 500 are expected to experience earnings growth in 2025, along with all but 7 of the 135 S&P 500 industries. This widespread growth has been a major driver of the S&P 500's forward earnings, supporting its 14.5% year-to-date gain.
By sector, information technology is anticipated to lead the way with a 20.2% expansion in 2025, followed by Health Care with an 18.4% increase, and Materials with a projected growth of 17.4%. Real estate is expected to see the slowest growth at 7.7%.
Industries like Interactive Home Entertainment, Copper, Paper & Plastic Packaging Products, Personal Care Products, and Passenger Airlines are expected to see significant earnings growth in 2025 after minimal growth this year. Additionally, industries housing MegaCap-8 stocks like Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, Nvidia, and Tesla are projected to have strong earnings growth ranging from 8.9% to 46.5% in 2025.
In conclusion, investors can expect a positive outlook for earnings growth in various sectors in 2025, with opportunities for potential investment growth. It's essential to stay informed about these projections to make well-informed financial decisions.