Tom Lee Is Bullish on Stocks, But Braced for a Margin Debt Drop

Fundstrat's Tom Lee reiterated his call for the S&P 500 to reach 8,000 by the end of August. He also repeated his warning that stocks are due for a pullback.

Speaking on CNBC, Lee joined Robinhood's Stephanie Guild and Payne Capital's Courtney Garcia. He said both views can hold at the same time.

A Bull Case Built on Earnings

Lee based his target on rising 2027 earnings estimates. He put the current figure near $410 per share, up from about $395 at the start of earnings season. Lee said the estimate could reach $425 by the end of the month.

Applying a price to earnings multiple of 20 to that figure would put the index close to 9,000, Lee said.

Courtney Garcia pointed to a broader trend supporting the rally. She noted that healthcare, financials, and industrials have all outperformed the S&P 500 over the past three months.

That breadth matters because the gains no longer depend on a handful of large technology names. Garcia added that the rally can continue if earnings and consumer spending keep holding up.

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