Ed Yardeni, President of Yardeni Research, has revised his year-end forecast for the S&P 500, setting a new target of 8,250, an 11.5% increase from last Friday’s close.
The updated forecast, a jump from the previous 7,700, positions Yardeni as the most optimistic among top Wall Street predictors. This adjustment comes on the heels of recent earnings that have triggered a stock market “meltup,” reported Fortune, citing Yardeni’s note to investors.
“The speed at which consensus earnings expectations for the current and coming years have risen in recent months is unprecedented,” Yardeni noted. He now expects large-cap companies’ earnings per share to hit $330 this year, up from his previous estimate of $310. His 2027 EPS forecast has also been revised upwards from $350 to $375.
Yardeni has also increased his S&P 500 revenue per share predictions for 2026 and 2027 by $100 to $2,200 and $2,300, respectively. He continues to believe in the resilience of the economy and earnings, a stance he’s maintained since the onset of the Roaring 2020s.
Despite acknowledging the risks of renewed conflict and potential stagflation, Yardeni remains steadfast in his prediction of the S&P 500 reaching 10,000 by the end of 2029. "It might arrive ahead of schedule,” he wrote.
Yardeni Stays Bullish Despite Risks
Yardeni’s bullish stance on the S&P 500 is not new. In December, he predicted that the 2020s could mirror the economic boom of the Roaring 1920s, with the S&P 500 potentially reaching 10,000 by the end of the decade.
Ed Yardeni said investors are underestimating the resilience of the U.S. economy, arguing that both the economy and stock market have successfully weathered major "stress tests," including the pandemic, lockdown-driven recession, supply chain disruptions, inflation, tariffs, and labor market challenges. He noted that despite these pressures, the U.S. has reached record highs in real GDP, household consumption, and stock market performance.
However, Yardeni warned that the Iran war is “likely to have a long tail.” He advised investors to buy energy stocks before the end of the ceasefire, suggesting that oil prices would not return to pre-war levels.
Yardeni’s revised forecast also significantly surpasses the 7,300 year-end target set by Fundstrat Head of Research Tom Lee, despite warning of a potential “inflation shock.”
Price Action: On a year-to-date basis, the Vanguard S&P 500 ETF (NYSE:VOO) gained 7.92%, while Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) surged 15.97%.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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