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.