Positive: Earnings growth projected to accelerate and improve in retail sector and S&P 500.

From Nasdaq: 2024-11-13 18:30:00

Total Q3 earnings for the S&P 500 members are up +6.9% with 73.6% beating EPS estimates. Net margins are expected to increase, and earnings growth is projected to accelerate in the next four quarters. Home Depot reported better-than-expected results, while Lowe’s Q3 earnings are expected to be down -10.2% with lower revenues.

The housing market’s sluggishness affects Home Depot and Lowe’s, impacted by high mortgage rates. Long-term rates remain high despite Fed easing, but eventual declines are expected. Consumer spending shifts post-Covid may benefit big-ticket retailers like Home Depot and Lowe’s, with housing equity acting as a financial resource.

Walmart has outperformed in the retail sector with a strong grocery business and digital platform gains. Retail sector earnings are analyzed in the report, and overall S&P 500 earnings for Q3 are expected to be up +7.6%. Energy sector drag is noted, but the Tech sector contributes to positive growth.

Earnings growth is expected to improve in the next quarter, with annual double-digit growth projected for the next two years. Tech sector earnings are forecasted to rise in 2025, driving S&P 500 earnings higher. The report includes charts showing quarterly and annual earnings trends for the S&P 500 index.



Read more at Nasdaq:: Looking Ahead to Retail Sector Earnings