Broad-Based Sector Growth Expected for 2025
From Nasdaq: 2025-01-29 17:40:00
The 2024 Q4 earnings season shows strength and positive outlook, with companies surpassing estimates and providing encouraging guidance. If 2025 earnings meet expectations, it will be the first time since 2018 that all Zacks sectors show positive growth. Royal Caribbean reports strong results, while Danaher falls short on guidance.
The Tech sector remains a key growth driver, with Q4 earnings expected to rise by +15.2% on +10.3% higher revenues. Earnings growth in the sector has been double-digit for the past six quarters. Tech’s earnings outlook for Q4 and 2025 continues to improve, highlighting its growth potential.
Expectations for 2024 Q4 show double-digit earnings growth in the next two years, with all 16 Zacks sectors projected to see earnings growth in 2025. The number of sectors with strong growth is set to expand, providing a positive outlook for the market without relying on mega-cap stocks for growth.
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