Key Takeaways
Wall Street veteran Ed Yardeni boosted his year-end S&P 500 forecast to 8,250, an 11.5 percent jump from Friday’s close that makes him the most optimistic among top strategists.
“We’ve never seen consensus earnings expectations rise so quickly for the current and coming years as they have in recent months,” Yardeni, president of his namesake research firm, said in a note. “The result has been an earnings-led meltup in the stock market.”
The market veteran’s new target for 2026, raised from 7,700, now sits above all other major Wall Street forecasts. His call tops views at Oppenheimer (8,100), Deutsche Bank (8,000), Morgan Stanley (7,800), and Goldman Sachs (7,600). To support his view, Yardeni lifted his 2026 earnings per share forecast for S&P 500 companies to $330 from $310.
The move reinforces Yardeni’s long-held “Roaring 2020s” thesis, which he now sees as having an 80 percent probability of continuing. He maintains a target for the S&P 500 to reach 10,000 by the end of 2029, a goal he suggested could be achieved even sooner. The index has already gained nearly 8 percent year-to-date.
Yardeni’s optimism is rooted in the U.S. economy’s proven resilience, which has weathered a pandemic, the supply shock from Russia’s war on Ukraine, and aggressive Federal Reserve rate hikes. He noted that any market meltdowns would represent buying opportunities rather than triggers for a recession or bear market, keeping his recession odds at just 20 percent.
In line with his bullish equity view, Yardeni also increased his revenue forecasts for the index. He sees revenue per share hitting $2,200 in 2026 and $2,300 in 2027, both figures representing a $100 increase from his prior estimates and nearly matching current consensus.
The upgraded forecast could pressure other firms to revise their own targets higher as corporate earnings continue to roll in. Investors will be watching to see if a new consensus forms around this more optimistic outlook, further fueling the market’s upward trend.
This article is for informational purposes only and does not constitute investment advice.
