Q2: EPS Goes Vertical

S&P 500 Q2 estimated bottom-up operating EPS have rocketed 19% higher since the start of June. This extends the trend of rising EPS projections that we’ve documented the past year-and-a-half. Yet, the magnitude of this revision is like nothing we’ve seen before—just last quarter, we were blown away by Q1’s 11% surge. EPS growth, combined with flat performance the past few months, has taken a material bite out of some of the generationally high multiples that have hung over this market the past few years.