Market Implying Negative Sales Growth for Next 5 Years

by: Value Expectations

Below is an updated graph of the historical average market implied sales growth for the S&P for the past 10 years. Even in 2002, the market did not forecast negative sales growth for the typical firm in the S&P 500. Today, the market is calling for these firms to deliver -8.99% annual sales growth over the next 5 years. This is deterioration from the January market implied sales growth of -1.1%.

Click to enlarge

Based on most recent reported quarterly sales number, the average company in the S&P 500 grew their sales by 2.1%.