Stock Market Outlook 2022: Another Good Year Ahead?
We expect solid economic and earnings growth in 2022 to help U.S. stocks deliver additional gains next year. If we are approaching—or are already in—the middle of an economic cycle with at least a few more years left (our view), then we believe the chances of another good year for stocks in 2022 are quite high. We believe the S&P 500 could be fairly valued at 5,000–5,100 at the end of 2022, based on an EPS estimate of $235 for 2023 and an index P/E between 21 and 21.5. "Prospects for above-average economic growth and accompanying earnings gains in 2022 point to another potentially good year for stock investors," says Jeff Buchbinder, CFA, Chief Equity Strategist, LPL Financial.