Earnings Optimism Enhances Stocks’ Allure as Iran Worries Ease

Investors that slashed their stock exposure as war flared in the Middle East may soon have a fresh reason for piling back into equities: the upcoming earnings season.

Analysts have been boosting their estimates of Corporate America’s profitability, even as uncertainty fueled by the Iran war spurred volatility in markets. The recent selloff also pushed stock valuations to their lowest levels in around a year, further bolstering the case for investors to put money back to work.