The forward price-to-earnings (P/E) ratios for major U.S. indices indicate varying valuations as of January 2025. The Russell 2000 is at 27.1x, slightly above its 10-year mean of 24.7x. The S&P 500's forward P/E stands at 22.6x, nearly two standard deviations above its long-term average. Analysts project a 14.8% increase in S&P 500 earnings per share (EPS) for the year, with Q4 2024 expected to show 11.9% year-over-year EPS growth. However, 71 companies within the S&P 500 have issued negative EPS guidance for Q4, exceeding the five-year average of 56. The sectors most affected include Information Technology, Industrials, and Consumer Discretionary. Additionally, the bottom-up EPS estimate for Q4 has decreased by 2.7%, from $63.60 to $61.88, which is lower than the five-year average decline of 3.4%. Revenue growth for the S&P 500 is projected at 4.6% for Q4, down from an earlier estimate of 5.2%.