Jefferies data: S&P 500 component earnings growth may accelerate year by year until the end of 2027

According to data compiled by Jefferies, the bottom-up target prices aggregated by sell-side analysts indicate that the earnings growth of S&P 500 constituent companies will accelerate year by year until the end of 2027. Over the next three years, earnings are expected to achieve double-digit growth consecutively, a scenario that historically coincides with above-average returns for the S&P 500 index. Despite concerns about excessive market concentration and overvaluation, strong corporate earnings—the key pillar supporting the three-year bull market in equities—remain solid.