Q2 earnings stable, Q3 estimates decrease, some sectors see positive revisions.

From Nasdaq: 2024-08-29 19:25:00

The Q2 earnings season has concluded, showing stable earnings with weakening estimates for the current period. Total S&P 500 earnings for 2024 Q3 are expected to increase by 3.8% year-over-year on 4.6% higher revenues, with estimates down from earlier in the quarter. The Tech and Finance sectors have seen positive estimate revisions.

Earnings estimates for full-year 2024 have also decreased, particularly in sectors like Business Services, Consumer Discretionary, and Energy. However, sectors such as Tech, Finance, Retail, and Utilities have seen increases in estimates. Nvidia’s Q2 earnings increased by 157.4% with 122.4% higher revenues, reflecting a strong performance overall.

Despite solid earnings growth, companies faced challenges beating revenue estimates in 2023 Q3. The Magnificent 7 stocks, including Nvidia and others, posted a 35.2% earnings increase with 14.7% higher revenues. Analysts view Nvidia’s outlook positively, despite a less-than-expected guidance raise.

The chart below depicts the expected growth in S&P 500 earnings for 2024 Q3 and the trend of earnings estimates over time. While there has been a decline, growth remains robust. Tech and Finance sectors have better margin projections, contributing to overall earnings growth in 2024.

Five stocks are identified as potential candidates for significant growth in 2024, with returns of over 100%. These picks are deemed to be under the radar, presenting a unique opportunity for investors to consider. For detailed analysis and stock recommendations, interested readers can access the full report.



Read more at Nasdaq:: Q2 Earnings Reflect Positivity, But Q3 Estimates Decrease