Strategists Say Stock Rally Needs Bumper US Earnings Season
- Firms need to show solid beats alongside forecast raise: Citi
- Forward 12-month earnings expectations are at record highs
Corporate America needs to deliver a blowout quarterly earnings season for US stocks to extend a record-breaking rally, according to some Wall Street strategists.
Analysts’ upgrades to profit estimates have outnumbered downgrades going into the second-quarter reporting period, according to a Citigroup Inc. index. At the same time, expectations for 12-month forward earnings stand at an all-time high, data compiled by Bloomberg show.