Investors can expect strong 14.5% earnings growth for S&P 500 companies in 2025

From Investing.com: 2024-07-06 04:11:02

Market participants are expecting strong earnings growth in 2025, with analysts predicting a robust 14.5% increase in S&P 500 companies’ earnings per share (EPS). This follows an anticipated 10.6% growth for this year. All sectors of the S&P 500 are expected to experience earnings growth, supporting the index’s 14.5% year-to-date gain.

The Information Technology sector is projected to lead the S&P 500’s earnings growth in 2025 with a 20.2% expansion, followed by Health Care at 18.4%, Materials at 17.4%, and Industrials at 15.2%. Real Estate is expected to have the slowest growth at 7.7%.

Several industries with strong expected growth in 2025, such as Interactive Home Entertainment, are expected to have minimal earnings growth in 2024. Other industries like Copper, Paper & Plastic Packaging Products, and Personal Care Products are forecasted to see significant improvements in earnings growth in 2025 from low levels this year.

Analysts also highlighted strong earnings growth expectations for industries housing MegaCap-8 stocks like Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, Nvidia, and Tesla. These stocks are projected to range from 8.9% to 46.5% growth in 2025.

Specific companies like Nvidia, Alphabet, Meta, Amazon, Netflix, Apple, Microsoft, Oracle, and Tesla are expected to see varying earnings growth in different industries like Semiconductors, Broadline Retail, Movies and Entertainment, Technology Hardware, Storage & Peripherals, and Automobile Manufacturers.



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