8/31/2026
By Charles Payne, CEO & Principal Analyst

Earnings & Valuations

The corporate earnings machine has been on fire, gaining strength after each successive recession, which is wonderful for shareholders.

The current surge is happening without a prior recession pullback. Usually, when earnings grow above 15%, the next year comes in around 5%, but we are seeing three years above 20%.

Valuations are above historical averages.

But make no mistake, this market has gotten cheaper in recent years, especially this year. Technology and Communication Services have seen the largest declines in price-to-earnings (P/E) ratio.

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Charles Payne
Wall Street Strategies