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U.S. stocks at their cheapest in nearly 18 months. Why earnings season holds the key on whether to buy.


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Published in Stocks and Investing on Thursday, April 10th 2025 at 17:01 GMT by MarketWatch   Print publication without navigation

  • U.S. stocks are still trading at a pretty lofty level despite recent wild swings in the financial markets. Investors now wonder what it will take to bring valuation down to levels tempting enough to buy.

U.S. stocks are currently at their cheapest levels in nearly 18 months, with the S&P 500 trading at a forward price-to-earnings ratio of 17.5, down from a high of 21.4 in August 2022, according to FactSet data. This decline in valuations comes amidst concerns about a potential recession and the Federal Reserve's interest rate hikes. Investors are closely watching the upcoming earnings season, which begins in mid-April, as it will provide crucial insights into corporate profitability and economic health. Strong earnings could signal a buying opportunity, suggesting that the market may have overcorrected, while disappointing results could lead to further declines in stock prices. The performance of major companies like Apple, Microsoft, and Amazon will be particularly important, as their earnings could significantly influence the overall market direction.

Read the Full MarketWatch Article at:
[ https://www.msn.com/en-us/money/other/u-s-stocks-at-their-cheapest-in-nearly-18-months-why-earnings-season-holds-the-key-on-whether-to-buy/ar-AA1CHc6x ]

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