Bloomberg Surveillance · Monday, August 10, 2026
John Gottlib of Seaport Research Partners highlighted that the market's earnings growth is significantly outpacing stock price increases, leading to lower valuations than commonly perceived. He stated that despite the market being up ten to fifteen percent, earnings are growing much more, making the stock multiple cheaper by about two and a half multiple points, or twelve percent, compared to the beginning of the year.
“There is one slide right at the beginning which highlights that the market is up whatever it is, you know, between ten and fifteen percent this year, but the earnings are way above that number, and the stock multiple is down.”
“And in reality, it's all earnings and the valuation is two and a half multiple points cheaper.”
“The theme, the analysts are underestimating the power of these earnings.”