uly 6 (Bloomberg) -- Analysts are raising earnings estimates for U.S. companies at the fastest rate since at least 2004 just as stocks post the biggest losses in 16 months on concern that the economy will sink back into a recession. Profit for Standard & Poorâs 500 Index companies will jump 34 percent in 2010, compared with a projected gain of 27 percent on March 29, according to more than 8,000 estimates compiled by Bloomberg. The revision, the most during any quarter in at least six years, came as lower-than-forecast home sales, manufacturing and private-sector job growth sent the benchmark gauge for American equities down 16 percent since April 23. Rising income and falling prices may mean shares are cheap enough to rise, says Philip Orlando of Federated Investors Inc., after $2.48 trillion was erased from equities and as bonds beat stocks by the most since 2001. Mohamed El-Erian and Bill Gross of Pacific Investment Management Co. say shares are no bargain as the recovery fades. Traxis Partners LLCâs Barton Biggs sold almost all his U.S. technology shares last week. âThe psychology of the stock market couldnât be worse, yet the valuation probably couldnât be a whole lot better,â said Orlando, the New York-based chief equity market strategist at Federated, which manages $350 billion. âBecause corporate earnings estimates are rising, thereâs a significant valuation imbalance that suggests later this year stocks are going to start going up again, and theyâll probably go up sharply.â http://noir.bloomberg.com/apps/news?pid=20601087&sid=a.cYOCQGST_4&pos=7