Unwavering consensus expectations for a blowout EPS growth recovery this year have been a major force behind the recent equity bull run. As such, sentiment is likely to remain tightly tethered to the revision cycle in months ahead.
Vaccine-fueled hopes for a quicker return to economic normalcy ignited a powerful rotation in Q4 away from long-dominant Quality and Momentum into Value and (smaller-cap) Size factors hit hardest by the pandemic shock since last March.