Tom Lee, chairman of Ethereum treasury company BitMine, said the S&P 500 is becoming cheaper on a valuation basis even as market sentiment has recently remained cautious. He said fundamentals for the index are improving, pointing to Fundstrat estimates that third-quarter earnings growth for S&P 500 companies could come close to 30%. Lee also said 2027 earnings-per-share expectations have been raised by more than 20% since the start of the year. In his view, the index’s gains have lagged the upward revisions in earnings expectations, which means valuation multiples have effectively come down. Lee added that higher oil prices could strengthen the U.S. economy through energy exports, while the relative strength in technology stocks and crypto markets suggests investors are betting on weaker inflation ahead.
Tom Lee, chairman of Ethereum treasury company BitMine, said on Oct. 7 that the S&P 500 is getting cheaper on a valuation basis even though market sentiment has recently been cautious.
According to Lee, fundamentals for the index are improving. Fundstrat expects third-quarter earnings growth for S&P 500 constituents to approach 30%, while 2027 earnings-per-share expectations have been revised up by more than 20% from the start of the year.
Lee said the S&P 500’s price gains have trailed the upward revisions in earnings expectations, indicating that valuation multiples have effectively declined.
He also said high oil prices could strengthen the U.S. economy through American energy exports. At the same time, the leading performance of technology stocks and the crypto market suggests investors are betting that inflation will ease in the future.
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