![Ascending line graph and list of share prices](https://static.seekingalpha.com/cdn/s3/uploads/getty_images/88621476/image_88621476.jpg?io=getty-c-w750)
Adam Gault
Analysts’ forecasts for profit growth at large U.S. companies have shown marked improvement recently, with net earnings upgrades shifting into positive territory, according to Berenberg
The firm on Friday updated its three-month rolling net upgrades/downgrades measure for U.S., European, U.K. and Japanese stocks as the H1 2024 reporting season moves forward. Net-upgrade balances for U.S. companies (SP500)(SPY), European and U.K. companies moved into positive territory in the last one to two months, Berenberg equity analysts Jonathan Stubbs and Leoni Externest said in a note.
U.S. earnings growth was at 11.7% Y/Y on a 12-month forward net-income basis, trending higher since summer 2023. “U.S. earnings can support U.S. equity gains over the coming year, but valuation means the bar is high with regards to extending global leadership,” the analysts said in the note.
Current net upgrades now stand at 6% for the S&P 500 (SP500)(IVV)(VOO); at 5.9% for Europe’s STOXX 600 index; at 1.2% for the U.K.’s FTSE 350 index; and at 13.9% for Japan’s Nikkei 225 (NKY:IND). Japan has been firmly in net-upgrade territory for more than a year, the analysts said.
Berenberg drew up a list of the top 10 U.S. stocks based on 12-month forward net-income basis. Here’s a chart of those leaders:
Here’s a list of the companies and their 12-month stock performances:
- Berkshire Hathaway (BRK.B)(BRK.A)- 12-month gain: +25.2%
- Smurfit Westrock (OTCPK:SMFTF) – 12-month gain: +24.6%
- Micron (MU) – 12-month gain: +59.5%
- Seagate (STX) – 12-month gain: +79%
- Western Digital (WDC) – 12-month gain: +72%
- Bristol-Myers Squibb (BMY) – 12-month loss: -20.4%
- SBA Comms. (SBAC) – 12-month loss: -5.2%
- Newmont (NEM) – 12-month gain: +7.8%
- Vistra (VST) – 12-month gain: +150.3%
- EQT (EQT) – 12-month loss: -17.4%