Over the past six quarters, Thomson Reuters notes 75% of S&P 500 companies have reported earnings above the mean analyst estimate. Additionally, during these six quarterly periods, the average negative to positive surprise is 1.2. This level is below the long term average N/P ratio of 2.0. However, in Q3 of this year, the N/P ratio did increase to 1.8., but still remains below the previously noted long term average.
|From The Blog of HORAN Capital Advisors|