JPMorgan’s Matejka warns lower EPS estimates could pressure stocks By Investing.com
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 22 2025
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Should l Buy ?
Source: Investing.com
Earnings Pressure on Equity Markets: JPMorgan's strategist Mislav Matejka warns that downward revisions in earnings per share (EPS) forecasts could negatively impact equity markets, despite companies potentially beating lowered expectations for Q1. He notes a significant decline in EPS revisions across the U.S. and Europe, which historically leads to compressing price-to-earnings multiples.
Outlook for European Earnings: While U.S. earnings are projected to fall significantly, Matejka suggests that European earnings may show relative strength due to improved regional PMIs and less aggressive consensus assumptions, indicating a potential closing gap in performance between U.S. and European equities.
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About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
