Goldman Sachs Sends Stark Warning on S&P 500 Earnings

This article first appeared on GuruFocus. Goldman Sachs Group (NYSE:GS) expects the rapid rise in S&P 500 earnings to cool rather than reverse, with several temporary forces currently lifting profits. S&P 500 earnings per share increased 51% year over year in the second quarter, while growth over the past four quarters reached 26%. The firm said that pace has pushed profits above their longer-term trend, although the index's forward price-to-earnings ratio has eased to 19 from 23 a year ago and now matches its 10-year average. Warning! GuruFocus has detected 6 Warning Signs with GS. Is GS fairly valued? Test your thesis with our free DCF calculator.GS GF Value chart Artificial intelligence spending is a major contributor.