Wall Sreet Weekahead - Hot earnings to keep fire under growth-stock rally
The Russell 1000 Growth index, which tracks such shares, is up 10.9 percent so far this year, outpacing the U.S. benchmark S&P 500 stock index's 6.6 percent rise and the 2.8 % advance of the Russell 1000 Value index.
And it's not just a U.S. phenomenon. Growth stocks - whose profits are expected to grow at a faster pace than the broader market - are also outperforming their value counterparts in Asia and Europe. Still, the appeal of riskier stocks perceived as better positioned to ride an accelerating global earnings tailwind, as opposed to those with a greater cushion of safety, is nowhere as far ahead as it is on Wall Street.
The average estimate of analysts for earnings per share growth this year of S&P 500 companies has risen to 11.3 % from 10.9 % at the start of the month, according to Thomson Reuters data, a trend that should continue to blunt concerns about lofty growth valuations.
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