Strategists Forecast 12% S&P 500 EPS Growth; Baskin Cuts Adobe Stake by 4.1%
Wall Street strategists forecast a 12% year-over-year earnings growth for the S&P 500, driven by AI capital expenditures and resilient margins, with EPS estimates rising from $235 in 2024 to $315 in 2026. Meanwhile, Baskin Financial Services reduced its holdings in Adobe by 4.1%, selling 2,336 shares and trimming its stake to 54,433 shares.
1. Sector Earnings Outlook
Wall Street strategists project a 12% year-over-year increase in S&P 500 earnings, with per-share estimates rising from $235 in 2024 to $315 by 2026. This upswing is attributed to sustained margin strength and elevated AI capital expenditures, signaling robust profitability potential for major technology names.
2. Institutional Stake Reduction
Baskin Financial Services cut its Adobe position by 4.1%, disposing of 2,336 shares to leave a holding of 54,433 shares. The sale adjusts the firm’s exposure to the software company, which now accounts for 1.4% of its portfolio, suggesting a rebalancing of institutional allocations.
3. Adobe Stock Outlook
Stronger sector earnings and expanding AI spending could bolster Adobe’s growth trajectory, especially if the company leverages its software offerings for AI-driven workflows. However, the recent institutional share reduction may introduce near-term selling pressure, making further stakeholder activity and quarterly results key for valuation.