Premium'Take A Shot On The Long Side Of Semis/Momo'; Top Goldman Quant Sees Less Leverage, Cleaner Positioning
The north star for SPX year-end remains 8k+, which Shawn Tuteja, who oversees ETF and custom baskets volatility trading within Goldman Sachs' global banking and markets division says isn’t really controversial at this point or what client conversations are focused on amidst a 20%+ drawdown in the momentum factor.
Goldman has 2027 EPS at 385, while consensus 2027 EPS is 398. If we take the midpoint of these two and put a 20.5 multiple, we get above 8000, which to be fair is less than 7% from today’s close –another reason why the factor and thematic story is so topical at this point. Chart 1 below is timely and shows by sector the bottoms-up revisions to consensus 2027 EPS since the end of Q1.