S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E

S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S

Yardeni Research, Inc.

September 29, 2021

Dr. Edward Yardeni 516-972-7683 [email protected]

Joe Abbott 732-497-5306 [email protected]

Please visit our sites at www.yardeni.com blog.yardeni.com

thinking outside the box Table Of Contents TableTable OfOf ContentsContents

S&P 500/400/600 Sectors Forward Earnings 3 S&P 500/400/600 Sectors Annual Earnings: 2021 4 S&P 500/400/600 Sectors Annual Earnings: 2022 5 S&P 500 Sectors Forward Earnings 6 S&P 500 Sectors Forward Revenues 7 S&P 500 Sectors Forward Profit Margin 8 S&P 500 Sectors Forward P/Es 9 S&P 500 Sectors Forward P/Sales 10 S&P 500 Sectors Net Earnings Revisions Index 11 S&P 500 Sectors Net Revenue Revisions Index 12 S&P 400 Sectors Forward Earnings 13 S&P 400 Sectors Forward Revenues 14 S&P 400 Sectors Forward Profit Margin 15 S&P 400 Sectors Forward P/Es 16 S&P 400 Sectors Forward P/Sales 17 S&P 400 Sectors Net Earnings Revisions Index 18 S&P 400 Sectors Net Revenue Revisions Index 19 S&P 600 Sectors Forward Earnings 20 S&P 600 Sectors Forward Revenues 21 S&P 600 Sectors Forward Profit Margin 22 S&P 600 Sectors Forward P/Es 23 S&P 600 Sectors Forward P/Sales 24 S&P 600 Sectors Net Earnings Revisions Index 25 S&P 600 Sectors Net Revenue Revisions Index 26 S&P 500/400/600 Sectors Forward Profit Margin 27 S&P 500/400/600 Sectors Forward P/Es 28 S&P 500/400/600 Sectors Forward P/Sales 29

September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500/400/600 Sectors Forward Earnings Figure 1. 120 120 S&P 500 SECTORS: FORWARD EARNINGS PER SHARE* 100 Consumer Discretionary Information Technology 100 Consumer Staples Materials Energy Real Estate Financials Communication Services 80 Health Care Utilities 80 Industrials

60 60 9/23 40 40

20 20

0 0 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2014 2015 2016 2017 2018 2019 2020 2021 2022 200 200 S&P 400 SECTORS: Consumer Discretionary Information Technology 175 Consumer Staples Materials 175 Energy Real Estate 150 Financials Communication Services 150 Health Care Utilities Industrials 125 125

100 100 9/23 75 75

50 50

25 25

0 0

-25 -25 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2014 2015 2016 2017 2018 2019 2020 2021 2022 150 150 S&P 600 SECTORS: Consumer Discretionary Information Technology Consumer Staples Materials 125 Energy Real Estate 125 Financials Communication Services Health Care Utilities 100 Industrials 9/23 100

75 75

50 50

25 25

0 0

-25 -25

yardeni.com -50 -50 I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV 2014 2015 2016 2017 2018 2019 2020 2021 2022 * Time-weighted average of the consensus estimates for current and next year. Source: I/B/E/S data by Refinitiv.

Page 3 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500/400/600 Sectors Annual Earnings: 2021 Figure 2. 140 140 S&P 500 SECTORS: Consumer Discretionary Industrials 2021 EARNINGS PER SHARE* Consumer Staples Information Technology 120 Energy Materials 120 Financials Real Estate Health Care Communication Services Utilities 100 100

80 80

60 60

40 9/16 40

20 20

0 0 I II III IV I II III IV I II III IV I II 2019 2020 2021 2022 250 250 S&P 400 SECTORS: Consumer Discretionary Industrials 225 Consumer Staples Information Technology 225 Energy Materials 200 Financials Real Estate 200 Health Care Communication Services 175 Utilities 175

150 150

125 125

100 100 9/16 75 75

50 50

25 25

0 0

-25 -25 I II III IV I II III IV I II III IV I II 2019 2020 2021 2022 200 200 S&P 600 SECTORS: Consumer Discretionary Industrials 175 Consumer Staples Information Technology 175 Energy Materials Financials Real Estate 150 Health Care Communication Services 150 Utilities 125 125

100 9/16 100

75 75

50 50

25 25

0 0 yardeni.com -25 -25 I II III IV I II III IV I II III IV I II 2019 2020 2021 2022 * Consensus expected operating earnings per share. Source: I/B/E/S data by Refinitiv.

Page 4 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500/400/600 Sectors Annual Earnings: 2022 Figure 3. 140 140 S&P 500 SECTORS: Consumer Discretionary Industrials 2022 EARNINGS PER SHARE* Consumer Staples Information Technology 120 Energy Materials 120 Financials Real Estate Health Care Communication Services Utilities 100 100

80 80

60 60 9/16

40 40

20 20

0 0 I II III IV I II III IV I II III IV I II 2020 2021 2022 2023 275 275 S&P 400 SECTORS: Consumer Discretionary Industrials 250 Consumer Staples Information Technology 250 Energy Materials 225 Financials Real Estate 225 Health Care Communication Services 200 Utilities 200 175 175 150 150 125 125

100 9/16 100 75 75 50 50 25 25 0 0 -25 -25 I II III IV I II III IV I II III IV I II 2020 2021 2022 2023 200 200 S&P 600 SECTORS: Consumer Discretionary Industrials 175 Consumer Staples Information Technology 175 Energy Materials Financials Real Estate 150 Health Care Communication Services 150 Utilities 125 125

100 9/16 100

75 75

50 50

25 25

0 0 yardeni.com -25 -25 I II III IV I II III IV I II III IV I II 2020 2021 2022 2023 * Consensus expected operating earnings per share. Source: I/B/E/S data by Refinitiv.

Page 5 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500 Sectors Forward Earnings Figure 4. 240 120 210 S&P 500 9/23 HEALTH CARE 100 21 22 22 9/23 180 (forward earnings*) 21 80 150 60 120 Annual consensus 40 90 estimates Forward earnings 60 20 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 17 55 49 15 COMMUNICATIONS SERVICES INDUSTRIALS 21 9/23 43 22 13 9/23 37 31 11 21 22 25

9 19

7 13 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 65 140 50 CONSUMER DISCRETIONARY 21 22 9/23 INFORMATION TECHNOLOGY 9/23 115 35 21 22 90 65 20 40

5 15 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 43 36 9/23 37 CONSUMER STAPLES MATERIALS 30 22 9/23 21 21 24 31 22 18 25 12 19

13 6 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 150.5 9 100.5 ENERGY REAL ESTATE 7 50.5 21 9/23 21 9/23 22 5 22 3

.5 1 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 56 20 FINANCIALS UTILITIES 44 21 9/23 18 22 21 22 9/23 32 16

20 14

Includes Real Estate 12 through September 2016 yardeni.com 8 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average (in blue) of consensus operating earnings estimates for current and next year (in red). Source: I/B/E/S data by Refinitiv.

Page 6 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500 Sectors Forward Revenues Figure 5. 1800 975 S&P 500 HEALTH CARE 9/23 1600 9/23 22 775 (forward revenues*) 21 22 21 1400 575

1200 375 Annual consensus 1000 estimates Forward revenues* 800 175 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 145 460 COMMUNICATION SERVICES INDUSTRIALS 125 21 9/23 410 22 105 360 85 9/23 310 21 22 65 260

45 210 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 750 500 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 21 22 9/23 425 625 9/23 22 21 350 500 275

375 200

250 125 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 500 275 9/23 CONSUMER STAPLES 21 22 MATERIALS 425 250 9/23 225 350 21 22 200 275 175

200 150 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 850 45 ENERGY REAL ESTATE 750 40 650 21 22 9/23 550 35 30 450 21 9/23 350 22 25

250 20 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 280 180 FINANCIALS UTILITIES 240 9/23 160 Includes Real Estate 21 22 200 through September 2016 140 21 160 22 9/23 120

yardeni.com 120 100 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

*Time-weighted average of consensus estimates for current year and next year. Source: I/B/E/S data by Refinitiv.

Page 7 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500 Sectors Forward Profit Margin Figure 6. 14 12.0 S&P 500 21 9/23 HEALTH CARE 11.5 12 (forward profit margin, percent) 22 22 (11.1) 21 9/23 11.0 10 10.5 Annual 8 Forward* (13.2) 10.0

6 9.5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 18 12 COMMUNICATION SERVICES 9/23 INDUSTRIALS 21 16 21 22 22 9/23 14 (16.7) (10.1) 10 12 10 8 8 6 6 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11 30 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9 21 9/23 25 22 9/23 21 22 7 20 5 15 3 (8.0) (24.8)

1 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8.5 16 CONSUMER STAPLES MATERIALS 8.0 14 21 22 9/23 7.5 9/23 12 21 22 7.0 10 6.5 8 6.0 (7.6) (13.3) 6 5.5 4 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 15 21 ENERGY REAL ESTATE 12 18 21 9/23 9 15 21 9/23 22 6 12 (7.6) 22 3 (16.5) 9

0 6 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 24 16 FINANCIALS UTILITIES 20 22 9/23 21 9/23 14 22 21 16 12 12 (19.1) Includes Real Estate 10 8 through September 2016 (14.5) yardeni.com 4 8 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average of the consensus estimates for current and next year. Source: I/B/E/S data by Refinitiv.

Page 8 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500 Sectors Forward P/Es Figure 7. 26 22 23 S&P 500 HEALTH CARE 20 (forward P/E) P/E (20.7) 9/23 18 20 (16.9) 9/23 16 17 14 14 12 11 10 8 8 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 28 29 COMMUNICATION SERVICES INDUSTRIALS (20.4) 26 23 23 (21.2) 9/23 9/23 20 18 17 13 14 11 8 8 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 30 40 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9/23 25 35 (25.8) 30 (29.4) 9/23 20 25 15 20 10 15 10 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 CONSUMER STAPLES MATERIALS (15.8) 25 20 9/23 (20.2) 20

9/23 15 15 10

10 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 60 85 Capped at 50 due to extreme values. 50 ENERGY REAL ESTATE 75 (49.4) 65 40 (12.6) 55 30 9/23 45 20 35 9/23 10 25 0 15 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 22 22 20 FINANCIALS UTILITIES 20 (19.1) 9/23 18 (14.0) 18 16 16 14 9/23 14 12 10 Includes Real Estate 12 8 through September 2016 10 yardeni.com 6 8 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv and Standard & Poor’s.

Page 9 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500 Sectors Forward P/Sales Figure 8. 3.0 2.25 S&P 500 9/23 HEALTH CARE 2.6 2.00 (forward P/S ratio) (1.87) 9/23 2.2 1.75 P/S (2.72) 1.8 1.50 1.4 1.25 1.0 1.00 .6 .75 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4.0 2.5 COMMUNICATION SERVICES INDUSTRIALS 3.5 9/23 9/23 3.0 (3.54) (2.06) 2.0 2.5 1.5 2.0 1.5 1.0 1.0 .5 .5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2.8 7 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9/23 2.4 9/23 6 2.0 (6.39) 5 (2.34) 1.6 4 1.2 3 .8 2 .4 1 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.8 2.5 CONSUMER STAPLES MATERIALS 1.6 9/23 (1.54) 9/23 (2.10) 2.0 1.4 1.2 1.5 1.0 1.0 .8 .6 .5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.75 9 ENERGY REAL ESTATE 9/23 1.50 8 (0.96) (8.14) 7 1.25 6 1.00 9/23 5 .75 4 3 .50 2 .25 1 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3.0 3.5 FINANCIALS 9/23 UTILITIES 2.5 3.0 (2.67) (2.78) 9/23 2.0 2.5 1.5 2.0 1.0 1.5 Includes Real Estate .5 through September 2016 1.0 yardeni.com .0 .5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv and Standard & Poor’s Corporation.

Page 10 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500 Sectors Net Earnings Revisions Index Figure 9. 50 30 S&P 500 HEALTH CARE 30 Net Earnings Revisions Index* 20 Sep Sep 10 10 0 -10 -10 -30 NERI (20.2) (14.3) -20 -50 -30 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 40 50 COMMUNICATION SERVICES INDUSTRIALS 30 20 Sep Sep 10 0 -10 -30 -20 (19.7) (23.2) -50 -40 -70 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 60 60 40 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 40 Sep 20 Sep 20 0 0 -20 -20 -40 (21.8) (25.5) -40 -60 -60 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 40 40 CONSUMER STAPLES MATERIALS 20 20 Sep Sep 0 0 -20 -20 (7.1) (16.8) -40 -40 -60 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 80 30 60 ENERGY REAL ESTATE Sep 15 40 Sep 20 0 0 -15 -20 -30 -40 (28.2) (22.6) -60 -45 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 60 40 40 FINANCIALS UTILITIES 20 20 Sep 0 Sep 0 -20 -20 -40 (24.9) Includes Real Estate (2.6) through September 2016 yardeni.com -60 -40 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25 95 97 99 01 03 05 07 09 11 13 15 17 19 21 23 25

* Three-month moving average of the number of estimates up less number of estimates down, expressed as a percentage of the total number of estimates. Source: I/B/E/S data by Refinitiv.

Page 11 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500 Sectors Net Revenue Revisions Index Figure 10. 45 40 30 S&P 500 NRRI (24.2) HEALTH CARE 30 Sep Sep 20 15 10 0 0 -15 -10 -30 -20 Net Revenue Revisions Index* (21.7) -45 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 60 60 40 COMMNICATION SERVICES INDUSTRIALS 40 Sep 20 Sep 20 0 0 -20 -20

-40 (18.6) (27.0) -40 -60 -60 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 55 60 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 35 40 Sep Sep 20 15 0 -5 -20 -25 (20.5) (27.1) -40 -45 -60 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 60 60 CONSUMER STAPLES MATERIALS 40 40 Sep 20 20 Sep 0 0 -20 -20 (20.1) (26.2) -40 -40 -60 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 80 45 60 ENERGY REAL ESTATE Sep 30 40 Sep 20 15 0 0 -20 -15 -40 -60 (40.0) (30.3) -30 -80 -45 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 40 40 30 FINANCIALS Sep UTILITIES 20 20 10 Sep 0 0 -10 -20 -20 -30 (25.7) (9.2) yardeni.com -40 -40 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Three-month moving average of the number of estimates up less number of estimates down, expressed as a percentage of the total number of estimates. Source: I/B/E/S data by Refinitiv.

Page 12 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 400 Sectors Forward Earnings Figure 11. 180 140 150 S&P 400 9/23 HEALTH CARE 21 9/16 115 21 22 120 (forward earnings) 22 90 90 65 40 60 Annual consensus estimates Forward earnings 30 15 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 90 COMMUNICATION SERVICES INDUSTRIALS 21 9/16 22 70 20 50

10 21 30 22 9/16 0

-10 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 104 9/16 230 84 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9/16 190 64 21 22 21 22 150 44 110 24 70

4 30 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 145 84 9/16 115 CONSUMER STAPLES 22 MATERIALS 9/16 69 21 54 85 21 39 22 55 24

25 9 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 125 12 ENERGY REAL ESTATE 10 100 8 75 21 6 22 9/23 50 4 25 21 9/16 22 0 -25 2 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 115 38 95 FINANCIALS 9/16 UTILITIES 21 22 21 22 9/16 33 75 28 55 23 35 18

yardeni.com 15 13 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average (in blue) of consensus operating earnings estimates for current and next year (in red). Source: I/B/E/S data by Refinitiv.

Page 13 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 400 Sectors Forward Revenues Figure 12. 2400 1800 2100 S&P 400 HEALTH CARE 22 9/16 1400 1800 (forward revenues*) 9/23 21 21 1000 1500 22 1200 600 Annual consensus 900 estimates Forward revenues 600 200 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1300 1500 1050 1300 COMMUNICATION SERVICES INDUSTRIALS 21 9/16 800 1100 550 22 900 300 700

21 500 22 9/16 50 300 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1450 2900 9/16 9/16 1250 CONSUMER DISCRETIONARY INFORMATI0N TECHNOLOGY 21 2500 1050 21 22 22 2100 850 1700 650 1300

450 900

250 500 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 219/16 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3000 800 2400 CONSUMER STAPLES MATERIALS 22 9/16 650 21 21 1800 22 500

1200 350

600 200 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1450 75 1200 ENERGY REAL ESTATE 65 950 55 700 21 21 22 45 450 22 9/23 35

200 9/16 25 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 700 350 600 FINANCIALS UTILITIES 21 9/16 500 300 22 9/16 400 21 22 250 300

yardeni.com 200 200 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average (in blue) of the current year’s and next year’s consensus revenues estimates (in red). Source: I/B/E/S data by Refinitiv.

Page 14 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 400 Sectors Forward Profit Margin Figure 13. 9 10 S&P 400 9/23 HEALTH CARE 8 9 (profit margin) 22 21 21 9/16 8 7 22 7 6 Annual 6 5 Forward* (8.5) 5 (8.3) 4 4 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12 8 COMMUNICATION SERVICES INDUSTRIALS 22 9/16 7 8 9/16 21 21 22 6 4 5 0 4 (9.1) (6.6) -4 3 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8 10 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 7 9/16 9 22 8 6 21 22 21 9/16 7 5 6 4 5 3 4 (7.0) (6.9) 2 3 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7 14 CONSUMER STAPLES MATERIALS 6 12 9/16 21 22 10 5 8 4 21 9/16 22 6 3 4 (3.6) (10.4) 2 2 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 20 ENERGY REAL ESTATE 20 18 (8.8) 16 15 9/23 14 10 21 9/16 22 12 5 10 21 22 (14.9) 0 8 -5 6 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 21 14 FINANCIALS 9/16 UTILITIES 22 18 12 21 22 21 9/16 15 10

12 8

9 6 (18.9) (11.4) yardeni.com 6 4 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average of the consensus estimates for current and next year. Source: I/B/E/S data by Refinitiv.

Page 15 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 400 Sectors Forward P/Es Figure 14. 26 35 S&P 400 HEALTH CARE 23 (forward P/E) (27.1) 30 20 9/23 25 17 9/23 20 14 11 P/E (16.9) 15 8 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 50 30 45 COMMUNICATION SERVICES INDUSTRIALS 40 (25.5) (18.9) 25 35 30 9/23 20 9/23 25 15 20 15 10 10 5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 30 40 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 25 35 (14.4) (22.0) 9/23 30 20 25 20 15 15 9/23 10 10 5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 25 CONSUMER STAPLES MATERIALS (9.0) (16.7) 20 20 15 9/23 15 10 9/23

10 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 80 60 ENERGY REAL ESTATE (41.2) 50 60 (13.5) 9/23 40 40 30 20 9/23 20 0 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 24 24 FINANCIALS UTILITIES 21 (11.1) (16.2) 20 18 15 9/23 16 12 9/23 12 9 yardeni.com 6 8 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv and Standard & Poor’s Corporation.

Page 16 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 400 Sectors Forward P/Sales Figure 15. 1.75 3.00 S&P 400 HEALTH CARE 2.75 1.50 2.50 (forward P/S ratio) 9/23 (2.23) P/S (1.43) 9/23 2.25 1.25 2.00 1.75 1.00 1.50 1.25 .75 1.00 .75 .50 .50 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2.5 1.50 COMMUNICATION SERVICES 9/23 INDUSTRIALS 2.0 (2.31) (1.25) 9/23 1.25 1.5 1.00

1.0 .75

.5 .50

.0 .25 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.2 2.25 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 2.00 1.0 9/23 (1.50) 1.75 9/23 1.50 .8 1.25 (1.01) 1.00 .6 .75 .50 .4 .25 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.25 1.25 CONSUMER STAPLES MATERIALS 1.00 (0.61) 1.00 9/23

.75 .75 9/23 .50 (0.94) .50

.25 .25 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3.5 7 ENERGY REAL ESTATE 3.0 9/23 6 2.5 (1.08) (6.15) 5 2.0 4 1.5 3 1.0 9/23 .5 2 .0 1 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3.0 3.0 FINANCIALS UTILITIES 2.5 2.5 (2.00) (1.85) 2.0 2.0 9/23 9/23 1.5 1.5 1.0 yardeni.com 1.0 .5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv and Standard & Poor’s Corporation.

Page 17 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 400 Sectors Net Earnings Revisions Index Figure 16. 40 20 S&P 400 HEALTH CARE 20 Sep Sep 10 0 0

-20 -10

-40 -20 NERI (15.9) Net Earnings Revisions Index* (8.3) -60 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 50 40 COMMUNICATION SERVICES INDUSTRIALS 25 20 Sep Sep 0 0 -25 -20 -50 -40 -75 (9.1) (17.0) -100 -60 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 30 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 30 20 Sep Sep 10 15 0 0 -10 -15 -20 -30 (23.8) (11.6) -30 -45 -40 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 40 CONSUMER STAPLES MATERIALS 20 Sep 20 10 0 0 Sep -20 -10 -40 -20 (-3.6) (16.3) -30 -60 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 30 ENERGY REAL ESTATE 30 20 Sep Sep 15 10 0 0 -10 -15 -20 -30 -30 -45 (25.0) (18.3) -40 -60 -50 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 20 FINANCIALS UTILITIES 30 10 15 Sep Sep 0 0 -15 -10 -30 -20 -45 (18.7) (6.2) yardeni.com -60 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Three-month moving average of the number of estimates up less number of estimates down, expressed as a percentage of the total number of estimates. Source: I/B/E/S data by Refinitiv.

Page 18 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 400 Sectors Net Revenue Revisions Index Figure 17. 30 20 S&P 400 HEALTH CARE 20 Sep Sep 10 10 0 0 -10 -10 -20 -20 -30 NERI (18.3) Net Revenue Revisions Index* (12.9) -40 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 60 40 COMMUNICATION SERVICES INDUSTRIALS 40 Sep 20 20 Sep 0 0 -20 -20 -40 -40 (18.2) (19.7) -60 -60 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 40 30 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY Sep 15 20 Sep 0 0 -15 -20 -30 (22.2) (15.7) -40 -45 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 40 CONSUMER STAPLES MATERIALS Sep 30 20

15 0

0 Sep -20

-15 -40 (2.3) (29.2) -30 -60 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 30 ENERGY REAL ESTATE 30 Sep Sep 20 15 10 0 0 -15 -10 -30 -20 -45 (28.9) (19.8) -30 -60 -40 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 20 FINANCIALS UTILITIES 20 Sep Sep 10 10 0 0 -10 -10 -20 -20 (16.6) (10.0) yardeni.com -30 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Three-month moving average of the number of estimates up less number of estimates down, expressed as a percentage of the total number of estimates. Source: I/B/E/S data by Refinitiv.

Page 19 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 600 Sectors Forward Earnings Figure 18. 85 9/23 165 9/16 70 S&P 600 HEALTH CARE 22 135 21 22 105 55 (forward earnings) 21 40 75

25 45 Annual consensus estimates Forward earnings 10 15 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.25 9/16 95 COMMUNICATIONS SERVICES INDUSTRIALS 21 75 1.00 22 .75 55 .50 35 .25 9/16 22 .00 21 -.25 -.50 15 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 125 85 9/16 95 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9/16 65 65 21 22 45 21 22 35 25

5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 140 65 9/16 115 CONSUMER STAPLES MATERIALS 21 21 22 9/16 45 90 22 65 25

15 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 150 20.3 ENERGY REAL ESTATE 15.3 125 10.3 100 5.3 75 21 22 9/23 50 25 21 9/16 0 22 -25 -50 .3 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 110 50 FINANCIALS 21 9/16 UTILITIES 22 85 22 21 9/16 60 40

35 30

yardeni.com 10 20 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average (in blue) of consensus operating earnings estimates for current and next year (in red). Source: I/B/E/S data by Refinitiv.

Page 20 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 600 Sectors Forward Revenues Figure 19. 1300 3250 9/23 9/16 S&P 600 21 HEALTH CARE 21 22 2500 1100 22 900 (forward revenues*) 1750

700 1000

500 Annual consensus estimates Forward revenues 300 250 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 21 2000 16 COMMUNICATION SERVICES INDUSTRIALS 9/16 1600 11 21 22 1200 6 9/16 21 800 22

1 400 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1800 9/16 875 1500 CONSUMER DISCRETIONARY INFORMATI0N TECHNOLOGY 9/16 750 21 22 22 625 1200 21 500 900 375

600 250

300 125 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 8600 1050 21 21 6600 CONSUMER STAPLES MATERIALS 900 22 9/16 4600 9/16 22 750 2600 600

450

600 300 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4150 85 3150 ENERGY REAL ESTATE 21 75 2150 9/23 65 1150 55 21 9/16 22 45 22 35 150 25 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 650 700 550 FINANCIALS UTILITIES 625 21 450 9/16 550 22 475 350 22 21 9/16 400 250 325

yardeni.com 150 250 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average (in blue) of the current year’s and next year’s consensus revenues estimates (in red). Source: I/B/E/S data by Refinitiv.

Page 21 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 600 Sectors Forward Profit Margin Figure 20. 8 8 S&P 600 HEALTH CARE 7 7 (profit margin) 9/23 6 6 21 22 5 9/16 5 22 4 Annual 21 4 3 Forward* (6.7) 3 (5.0) 2 2 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 15 7 COMMUNICATION SERVICES INDUSTRIALS 21 10 6 9/16 5 22 9/16 22 5 0 21 4 -5 (4.5) (5.7) -10 3 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6 9/16 10 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 21 9 5 22 9/16 8 4 7 21 22 3 6 5 2 4 (6.1) (8.1) 1 3 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5 7 CONSUMER STAPLES MATERIALS 6 4 21 22 9/16 5 3 9/16 4 2 22 3 (2.7) 21 (5.2) 1 2 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 20 40 ENERGY REAL ESTATE 15 30 10 20 5 21 9/16 22 10 0 (5.2) 21 22 9/23 -5 0 (3.5) -10 -10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 14 FINANCIALS 9/16 UTILITIES 12 20 22 9/16 21 22 21 10 15 8 10 6 (22.2) (11.8) yardeni.com 5 4 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average of the consensus estimates for current and next year. Source: I/B/E/S data by Refinitiv.

Page 22 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 600 Sectors Forward P/Es Figure 21. 30 50 S&P 600 HEALTH CARE 45 25 (forward P/E) (33.0) 40 35 20 9/23 30 9/23 15 25 20 10 P/E (15.9) 15 5 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 50 30 45 COMMUNICATION SERVICES INDUSTRIALS 40 (18.9) 25 35 30 9/23 20 25 15 20 9/23 15 (21.1) 10 10 5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 30 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 25 (10.0) (22.0) 25 9/23 20 20

15 15

10 9/23 10

5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 CONSUMER STAPLES MATERIALS (16.7) (14.8) 25 20 20 9/23 9/23 15 15 10

10 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 80 70 ENERGY REAL ESTATE (57.1) 60 60 (13.5) 9/23 50 40 40 30 20 9/23 20 0 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 24 30 FINANCIALS UTILITIES 21 (11.1) (22.8) 25 18 9/23 15 20 12 9/23 15 9 yardeni.com 6 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv and Standard & Poor’s.

Page 23 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 600 Sectors Forward P/Sales Figure 22. 1.4 2.00 S&P 600 HEALTH CARE 1.75 1.2 (forward P/S ratio by sector) (1.65) 9/23 9/23 1.50 1.0 1.25 .8 1.00 .6 P/S (1.06) .75 .4 .50 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3.0 1.4 COMMUNICATION SERVICES INDUSTRIALS 2.5 (0.96) (0.92) 1.2 2.0 1.0 1.5 9/23 .8 1.0 9/23 .5 .6 .0 .4 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.0 1.75 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9/23 1.50 .8 (1.63) (0.62) 1.25 .6 9/23 1.00 .4 .75

.2 .50 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.0 1.2 CONSUMER STAPLES MATERIALS (0.78) 1.0 .8 (0.51) 9/23 .8 .6 9/23 .6 .4 .4

.2 .2 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2.0 7 ENERGY REAL ESTATE (2.98) 6 1.5 (0.46) 5 1.0 4 9/23 3 .5 9/23 2 .0 1 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3.5 3.5 FINANCIALS UTILITIES 3.0 3.0 (2.69) 9/23 (2.50) 2.5 2.5 9/23 2.0 2.0 1.5 1.5 1.0 yardeni.com 1.0 .5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv and Standard & Poor’s.

Page 24 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 600 Sectors Net Earnings Revisions Index Figure 23. 30 20 S&P 600 HEALTH CARE 15 Sep Sep 10 0 0

-15 -10

-30 -20 NERI (11.9) Net Earnings Revisions Index* (7.9) -45 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 30 COMMUNICATION SERVICES INDUSTRIALS 15 Sep 15 Sep 0 0 -15 -15 -30 -30 -45 (5.9) (18.3) -60 -45 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 40 20 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 10 Sep 20 Sep 0 0 -10 -20 -20 (18.2) (6.6) -30 -40 -40 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 30 CONSUMER STAPLES MATERIALS 20 15 Sep 10 Sep 0 0 -15 -10 -30 -20 (9.1) (10.9) -30 -45 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 30 ENERGY REAL ESTATE 30 20 15 Sep Sep 10 0 0 -15 -10 -30 -20 -45 (13.8) (8.7) -30 -60 -40 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 20 FINANCIALS UTILITIES 15 10 Sep Sep 0 0

-15 -10

-30 -20 (9.7) (2.3) -45 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Three-month moving average of the number of estimates up less number of estimates down, expressed as a percentage of the total number of estimates. Source: I/B/E/S data by Refinitiv.

Page 25 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 600 Sectors Net Revenue Revisions Index Figure 24. 30 20 S&P 600 HEALTH CARE 20 Sep Sep 10 10 0 0 -10 -10 -20 Net Revenue Revisions Index* -20 -30 NERI (15.2) (10.8) -40 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 60 30 COMMUNICATION SERVICES INDUSTRIALS Sep 40 15

20 0 Sep 0 -15

-20 -30 (13.1) (20.0) -40 -45 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 40 30 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY Sep 15 20 Sep 0 0 -15 -20 -30 (20.1) (15.1) -40 -45 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 45 CONSUMER STAPLES MATERIALS 20 30 Sep Sep 15 10 0 0 -15 -10 (17.2) (17.1) -30 -20 -45 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 60 30 ENERGY REAL ESTATE 20 40 Sep 10 20 Sep 0 0 -10 -20 -20 -40 (24.1) (15.1) -30 -60 -40 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 30 FINANCIALS UTILITIES 20 20 10 10 Sep 0 Sep 0 -10 -10

-20 (5.8) (2.1) -20 -30 -30 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Three-month moving average of the number of estimates up less number of estimates down, expressed as a percentage of the total number of estimates. Source: I/B/E/S data by Refinitiv.

Page 26 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500/400/600 Sectors Forward Profit Margin Figure 25. 14 18 S&P 500/400/600 9/23 HEALTH CARE 12 (11.1) 15 (profit margin) (8.2) 10 (5.0) 12 8 9/23 9 6 6 4 S&P 500 LargeCap (13.2) 2 S&P 400 MidCap (8.5) 3 S&P 600 SmallCap (6.7) 0 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 20 12 COMMUNICATION SERVICES 9/23 INDUSTRIALS 15 9/23 10 10 8 5 6 0 (16.7) -5 (9.0) 4 (4.5) (10.1) (6.6) (5.7) -10 2 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 9 30 CONSUMER DISCRETIONARY 9/23 INFORMATION TECHNOLOGY (8.0) 9/23 25 7 (7.0) 20 (6.1) (24.8) 5 (6.8) 15 (8.1) 10 3 5 1 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12 14 CONSUMER STAPLES MATERIALS 9/23 10 12 (7.6) (3.6) (2.7) 10 8 9/23 8 6 6 4 4 2 2 (13.3) (10.4) (5.2) 0 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 ENERGY REAL ESTATE 20 (7.6) 25 15 (8.0) (3.6) 20 10 9/23 9/23 15 5 10 0 (16.5) -5 (14.9) 5 (5.2) -10 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 16 FINANCIALS UTILITIES 9/23 14 20 9/23 (14.5) 12 (11.4) 15 (11.8) 10 8 10 6 (19.1) (18.0) (22.2) yardeni.com 5 4 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

* Time-weighted average of the consensus estimates for current and next year. Source: I/B/E/S data by Refinitiv.

Page 27 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500/400/600 Sectors Forward P/Es Figure 26. 35 55 S&P 500/400/600 HEALTH CARE 30 45 (forward P/Es) S&P 500 LargeCap (20.7) (16.9) 25 (27.1) S&P 400 MidCap (16.9) (33.0) 35 20 9/23 25 15 9/23 15 10 S&P 600 SmallCap (15.9) 5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 60 30 COMMUNICATION SERVICES INDUSTRIALS 50 (21.2) (25.5) (21.1) 25 40 9/23 20 30 9/23 15 20 (20.4) 10 (18.9) 10 (16.1) 0 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 45 30 40 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9/23 25 35 (29.4) 30 9/23 (14.4) 20 25 (10.0) 20 15 15 (25.8) (22.0) 10 10 (20.0) 5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 30 30 CONSUMER STAPLES MATERIALS 25 25 (20.2) (15.8) (9.0) (14.8) (16.7) (19.2) 20 20 9/23 9/23 15 15 10

10 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 50 70 ENERGY REAL ESTATE 40 60 (12.6) 9/23 50 30 (13.5) (12.9) 40 20 30 9/23 10 20 (49.4) (41.2) (57.1) 0 10 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 35 30 FINANCIALS UTILITIES 30 (14.0) 25 (11.1) 25 (11.3) 9/23 20 20 15 15 9/23 (19.1) 10 (16.2) 10 (22.8) yardeni.com 5 5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv.

Page 28 / September 29, 2021 / S&P 500/400/600 Revenues, Earnings, Margins, NERI, P/E, P/S Yardeni Research, Inc. www.yardeni.com S&P 500/400/600 Sectors Forward P/Sales Figure 27. 4.0 3.0 3.5 S&P 500/400/600 HEALTH CARE 2.5 3.0 (forward P/Sales) S&P 500 LargeCap (2.72) 9/23 (1.87) 2.5 S&P 400 MidCap (1.43) (2.23) 2.0 9/23 2.0 S&P 600 SmallCap (1.06) (1.65) 1.5 1.5 1.0 1.0 .5 .0 .5 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4.0 2.50 3.5 COMMUNICATION SERVICES 9/23 INDUSTRIALS 2.25 9/23 3.0 (3.54) 2.00 (2.31) 2.5 1.75 (0.96) 1.50 2.0 1.25 1.5 1.00 1.0 .75 .5 .50 (2.06) (1.25) (0.92) .0 .25 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2.8 7 CONSUMER DISCRETIONARY INFORMATION TECHNOLOGY 9/23 2.4 9/23 6 (2.34) (6.39) 2.0 5 (1.01) (1.50) 1.6 (0.62) (1.63) 4 1.2 3 .8 2 .4 1 .0 0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1.75 2.5 CONSUMER STAPLES MATERIALS 1.50 9/23 (2.10) 9/23 2.0 1.25 (0.94) 1.00 (0.78) 1.5 .75 1.0 .50 .5 .25 (1.54) (0.61) (0.51) .00 .0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 3.0 9 ENERGY REAL ESTATE 9/23 2.5 (0.96) 8 (1.08) 7 2.0 (0.46) 6 1.5 5 4 1.0 9/23 (8.14) 3 .5 (6.15) (2.98) 2 .0 1 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4.0 3.5 FINANCIALS UTILITIES 3.5 3.0 (2.67) (2.78) 9/23 3.0 (2.00) (1.85) 2.5 9/23 2.5 (2.50) (2.69) 2.0 2.0 1.5 1.5 1.0 1.0 .5 yardeni.com .5 .0 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Source: I/B/E/S data by Refinitiv.

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