Consensus estimates from analysts on S&P500 EPS for CY 2025 stands at 228.98 as of 5th May 2022.
Based on last night closing of 3,935, that translate to a forward PE of 17.18x which is below the 5-year average of 18.6x. However, it was still above the next four most recent historical averages: 10-year (16.9), 15-year (15.5), 20-year (15.5), and 25-year (16.5).
From a technical perspective, the support stands at around 3,880 which translate to a forward PE of 16.94x which is very close to the 10-year average.
I believe at 3,880, which is pretty close, about 1.4% away from last nights closing, the market should find some support as value players who are on the sidelines may start taking positions.
Investors should take the opportunity to load up on US equities, especially the big tech when S&P is trading around the 3,880 level.
Personally, I’m looking at Microsoft, Apple, Alphabet, Amazon, IBM, Intel and smaller positions in Facebook and Plug Power.