Tom Lee Says S&P 500 Valuation Is Falling as Q3 Earnings Growth Could Near 30%

BitMine Chairman Tom Lee said the S&P 500’s valuation is declining as earnings expectations rise faster than the index, even as market sentiment remains cautious on Oct. 7.

S&P 500 third-quarter earnings growth could approach 30%. Expectations for 2027 earnings per share have risen more than 20% since the start of the year, adding to signs of improving corporate fundamentals.

Lee said the index’s gains have not kept pace with the increase in earnings expectations. That gap means the market’s valuation multiple has fallen, making the S&P 500 less expensive relative to expected earnings.

Lee also said higher oil prices could strengthen the U.S. economy through energy exports. Technology stocks and crypto markets have outperformed, which he said suggests investors are positioning for weaker inflation ahead.