Ed Yardeni: S&P 500 Earnings Per Share Forecast Nears 500 Dollars

Techub News reports that Yardeni Research President Ed Yardeni stated that Wall Street analysts maintain the S&P 500 earnings forecast despite sell-offs in Alphabet and Intel, with earnings per share nearing 500 dollars by 2028. Yardeni said that the S&P 500's forward earnings per share are expected to increase by 31% within the year, the index to rise by 11.4%, and the forward price-to-earnings ratio to decline by 13.5%. He maintains a year-end target of 7900 points, applying an 18.6 times P/E ratio to 2027 earnings per share of 425 dollars. He also said bond investors are constraining AI borrowers, with credit default swap spreads widening between Oracle and CoreWeave; AI company bonds have better prospects than stocks, but when data center spending will translate into profits remains unclear. (BeInCrypto)