EPS estimates for S&P 500 firms are up over 13% in Q3

More than a dozen S&P 500 companies are heading into next week’s earnings reports with earnings-per-share forecasts that have been raised sharply in recent months.

The third-quarter earnings season, which began in early October, is showing cumulative profit growth of more than 13% for the period ending September 30.

If confirmed when results are released, it would be the fourth straight quarter of earnings growth across the S&P 500, based on figures cited by CNBC.

Fifteen companies in the S&P 500 are being monitored closely because their earnings-per-share estimates have increased by at least 20% over the past three and six months, and each stock still shows at least 15% upside to the average 12-month price target.

Alphabet, Visa, and Cigna earnings momentum

Alphabet Inc. is projected to report $2.28 per share for the third quarter. That forecast is 71% higher than what analysts projected three months earlier and 112% higher than the estimate from six months earlier.

The average analyst price target of $252 suggests 18% upside. The stock, which owns Google and YouTube, has gained 33% over the past three months and 63% over the past six. Alphabet’s rapid estimate revisions signal that analysts have recalculated revenue expectations tied to advertising and cloud services.

Visa Inc. is expected to post $2.97 per share in earnings for the period. That estimate is 41% higher than the forecast from three months ago and nearly 50% higher than the estimate six months ago.

The stock carries a $393 average price target, implying around 16% upside from current levels. Despite these improved earnings expectations, Visa shares have been weaker than the broader S&P 500 performance. The stock is down almost 3% in the past three months and is up less than 10% this year.

Cigna Group is now forecast to report $7.64 per share, which is 27% higher than estimates from three months back and 45% higher than forecasts made in April. The average price target for the stock is $361, indicating 32% potential upside. Cigna has trailed the S&P 500 over the past three months, past six months, and year-to-date.

However, in the past month, the company’s stock has gained 5.2%, compared with the S&P 500’s 1.2% rise. The recent movement suggests traders are positioning ahead of next week’s earnings release.

Indexes reach records as inflation cools

U.S. equities ended Friday at new intraday record levels after inflation data showed slower price increases. The Dow Jones Industrial Average rose 546 points, or 1.2%. The S&P 500 added around 1%, moving above 6,800 for the first time.

The Nasdaq Composite increased 1.3%. The Dow is now on track to record its first-ever close above 47,000. The move followed investor expectations that the Federal Reserve could continue with a rate-cutting path without reversing course.

Meanwhile, Ford was the top performer in the S&P 500 during Friday’s session, surging by more than 13%, its best trading day since 2022, driven by stronger sentiment around consumer demand after its Q3 earnings smashed Wall Street’s estimates, as Cryptopolitan reported.

President Donald Trump commented on market levels and connected them directly to his trade policies. Trump wrote, “THE STOCK MARKET IS STRONGER THAN EVER BEFORE BECAUSE OF TARIFFS!” in a post on Truth Social.

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