Ed Yardeni sees S&P 500 rising to more than 8,000. Here’s why

Stocks are at record highs, and Ed Yardeni thinks there's much more upside to be had. The president of Yardeni Research and longtime market strategist hiked his year-end S & P 500 target to 8,250 from 7,700. That's 11.5% above Friday's close of 7,398.93. The driver for this sharp outlook boils down to one word: earnings. "I've been bullish, but not bullish enough," Yardeni told CNBC's " Squawk Box " in an interview Monday. "The earnings estimates of analysts have been phenomenal. I've never seen anything like it." Yardeni isn't the only one getting more bullish on stocks due to strong earnings. HSBC raised its 2026 S & P 500 forecast to 7,650 and noted the benchmark could top 8,000. It also revised higher its year-end earnings forecast by 8%. Indeed, this earnings season has been exceptional. More than 400 S & P 500 companies have posted results, with 84% of those exceeding bottom line estimates, according to FactSet. If that beat rate holds by the end of the reporting period, it would mark the highest beat rate since Q2 2021, FactSet senior earnings analyst John Butters wrote. Those companies have also posted a whopping 25.6% year-over-year earnings expansion, which is far higher than the five-year average of 7.1%. High oil prices stemming from the U.S.-Iran war, however, could dampen earnings going forward. West Texas Intermediate futures have soared 71% this year. Yet, Yardeni isn't too worried. …