Earnings results from S&P 500 companies in 2021 blew past analyst estimates to deliver year-on-year growth in the first three quarters of 52.8%, 96.3% and 42.6%, respectively, according to Refinitiv, which currently sees fourth-quarter annual earnings growth of 22.3%.
Companies, consumers and the broader economy largely thrived in 2021, helped by several factors such as a transfer of power in the U.S. government, the “meme stock” phenomenon, generous fiscal and monetary stimulus, booming demand and price spikes.
Citigroup analysts raised their price target for the S&P 500 to 5,100 from 4,900 set in October, cautioning that a U.S. Federal Reserve policy tightening could pose valuation headwinds.
The S&P 500 rose about 27% in 2021, gaining more than 3% in the last two months alone. The index closed at 4793.54 on Tuesday.
Upcoming quarterly results and 2022 outlook of companies could provide the cushion for growth, despite COVID-19 and supply chain woes, Citigroup analyst Scott Chronert said.
Source: Economy - investing.com
