Asia-Pacific Strategy: Earnings Revisions Leading Indicator (ERLI)

Goldman Sachs' June 2026 Asia-Pacific strategy report indicates that the Earnings Revisions Leading Indicator (ERLI) forecasts continued earnings upgrades, primarily supported by AI infrastructure and North Asian markets. Conversely, sectors like Consumer Staples and India face downside risks.

Key Takeaways

• 1.Consensus earnings upgrade momentum strengthened in May, rising 3.6% MoM, with ERLI model forecasting continued upgrades driven by Tech Hardware and North Asian markets.
• 2.Investment divergence is observed in the region: Tech-heavy markets like South Korea and Taiwan are seeing earnings upside, while ASEAN, India, and Chinese consumer/manufacturing sentiment are facing downward revisions.

Table of Contents

• Earnings Revisions Leading Indicator (ERLI)
• ERLI projects further earnings upgrades, led by tech and North Asia
• AI infrastructure and North Asia will continue to lead earnings upgrade cycles
• Our long and short stock screens
• Forecasting earnings revisions: Our updated model projections
• Trading earnings revisions
• Appendix

Document Preview

Page 1 of 1

Subscribe for full accessStart Free Trial