Reuters report that as companies share their expectations for coming months, the proportion of raised forecasts to those that are lowered is the healthiest it has been since 2011
(Bolding below is mine)
- Technology and healthcare sectors ... forecasts that are even rosier than those of most analysts
- Pfizer, which last week raised its full-year forecasts, are citing a benefit from the dollar
- When it was rising, the dollar had been among the biggest profit drags for U.S. multinationals in recent quarters
- Overall, companies are bolstering analysts' view that the first quarter, on track for a 5.5 percent decline in S&P 500 earnings, will prove to be the bottom of the current earnings recession.
"We think people are too bearish on earnings, and we're much closer to the end of the profit recession than to the beginning," said Richard Bernstein, chief executive and chief investment officer of Richard Bernstein Advisors in New York.
"It doesn't mean profits are going to be booming ... but it's better than it was, and why you're seeing some of the rotation into more cyclical stocks now."