GO
Loading...

Jeremy Siegel: Earnings growth bullish

Quarterly results so far suggest that corporate earnings would see strong growth through 2013, market bull Jeremy Siegel said Tuesday.

"This quarter's earnings look to be 4 percent above the previous quarter," the Wharton School of the University of Pennsylvania finance professor said. "Next week, I think we're going to get a zero handle on GDP growth, and Europe is still negative.

"I think that's pretty remarkable to even get 4 percent in a quarter where economic growth is pretty close to zero. If we get the acceleration that many economists and Ben Bernanke think in the second half of the year, we should see strong earnings growth."

Siegel, who holds a year-end price target of 17,000 for the Dow Jones Industrial Average, said that the index would reach 18,000 in 2014.

(Read more: Jeremy Siegel Still Sees Dow 17,000)

"I think equities are the last asset class to sell at or below their long-term value, so, you know, I'm very, very bullish, still, on stocks," he said.

On CNBC's "Fast Money," Siegel conceded that higher interest rates could stall the stock market rally, noting that yields of 2.75 percent in the 10-year Treasury bond were now a "comfortable number."

"If bonds shoot up to 3, 3¼ for some reason, that's going to take another period to digest those higher yields, but at least right now that doesn't look to be in the cards," he added.

But Siegel also pointed out that more than two-thirds of companies reporting quarterly earnings so far have been beating estimates.

"Actually, that you can get revenue growth without the buybacks is a positive feature for the earnings and valuation going forward," he added.

By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.

CNBC's Stephanie Landsman contributed to this article. Follow her on Twitter at @StephLandsman.

Trader disclosure: On July 23, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Tim Seymour is long BAC; Tim Seymour is long SBUX; Tim Seymour is long UTX; Tim Seymour is long BA; Anthony Scaramucci is long BAC; Anthony Scaramucci is long C; Anthony Scaramucci is long GS; Anthony Scaramucci is long CSCO; Anthony Scaramucci is long YHOO; Anthony Scaramucci is long GOOG; Anthony Scaramucci is long AMZN; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long GOOG; Karen Finerman is long M; Karen Finerman is long TGT; Karen Finerman is long MW; Karen Finerman is long MDY PUTS ; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long MSFT; Guy Adami is long AGU; Guy Adami is long NUE; Guy Adami is long BTU; Guy Adami's wife, Linda Snow, works at Merck; Ken Sena is long YHOO ; Ken Sena is long GOOG ; Ken Sena is long FB.

Symbol
Price
 
Change
%Change
DJIA
---
US 10-YR
---

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET

Halftime Report