Key Points:
Q4 sales and earnings growth is set to slow from the first three quarters of 2018 after downward revisions in nearly every sector over the past 90 days.
Median sales estimates of 4% and EPS estimates of 11% for S&P 500 companies would be slowest in seven and six quarters, respectively.
Median EPS estimates have fallen 2% in 90 days for the S&P 500 and 4% in 90 days for the S&P 600.
Index and sector trends heading into earnings are much improved (all major indices in a Confirmed Uptrend), however, the overhang of downward-trending moving averages and, in most cases, 10% or more before new highs remains.
U.S. Focus List count of mainly highly-rated growth stocks is up from a low of 24 in December to 30 but remains below the healthier total of 40+. We are hopeful earnings season will be better than anticipated and will result in a substantial increase in the number of stocks on our list.
