Positive

From Nasdaq: 2024-10-16 18:03:00

Q3 earnings season is off to a positive start, with 48 S&P 500 companies reporting a 5.2% increase in earnings on 4.9% higher revenues. 81.3% beat EPS estimates, and 72.9% exceeded revenue estimates, showing a better performance than previous periods.

Despite the overall growth, the Tech sector continues to drive earnings, with Q3 marking its 5th consecutive quarter of double-digit growth at +11.4%. Excluding Tech, the rest of the index would see only a +0.6% earnings increase. Future quarters also forecast double-digit growth for the S&P 500.

The early results of Q3 earnings suggest a “Goldilocks” economy, reflecting positive sentiment on the macroeconomic landscape. Banks like JPMorgan and Bank of America view the economy positively, foreseeing stable consumer spending and loan portfolios. Despite constrained earnings power, banks remain optimistic about the current economic phase.

Total earnings for the S&P 500 in Q3 are expected to rise by +3.6% compared to the same period last year, with +4.6% higher revenues. Excluding the Energy sector’s decline of -24.2%, the earnings growth pace might improve to +5.8%. Tech sector’s contribution remains crucial, showing a significant earnings boost.

A new top semiconductor stock is identified by Zacks, positioned for substantial growth amid rising demand for AI, ML, and IoT technologies. With expanding earnings and a growing customer base, this stock presents a significant opportunity in the semiconductor sector, set to capitalize on the industry’s growth projections.



Read more at Nasdaq:: Earnings Results Provide Reassuring Economic View