However, despite beating expectations, the median stock only outperformed the index by less than 0.1% on results day, marking the smallest margin since late 2020. This suggests that even with strong earnings, stocks are struggling to significantly outperform the market.
Key takeaways:
- Investors are requiring impressive corporate earnings and profit forecasts this season due to expensive-looking stocks after a record first-quarter rally.
- S&P 500 firms are more than halfway through the reporting period.
- 79% of S&P 500 firms have beaten profit expectations, according to data compiled by Bloomberg Intelligence.
- The median stock outperformed the index by less than 0.1% on results day, marking the smallest margin since late 2020.