- Wall Street’s second-quarter earnings kickoff looms large on the horizon.
- Forecasts predict an 8.8% surge in annualized profit and a 4.6% uptick in revenue growth.
- Through the lens of the InvestingPro stock screener, hidden gems primed for double-digit profit and sales expansion come to light.
An unprecedented wave of market activity approaches; brace yourself for what’s to come.
On Friday, Wall Street will be abuzz with the financial revelations of major players like JPMorgan Chase, Wells Fargo, and Citigroup as they unveil their latest quarterly figures.
Distinguished investors grasp that astute selections during earnings season are key to outperforming market norms.
Forthcoming Earnings to Keep on Your Radar
Following a week dominated by banking institutions, the spotlight will shift to big-name entities such as Netflix, Bank of America, Goldman Sachs, and more.
Subsequently, as July reaches its finale, the tech behemoths like Tesla, Microsoft, Alphabet, and Amazon are set to disclose their quarterly standings.
Per FactSet insights, an 8.8% surge in earnings per share is on the cards for the S&P 500 this quarter, slightly lower than the earlier anticipated 9.1% upsurge.
The graphical representation above illustrates that the Communication Services domain shines with a projected +18.4% annualized earnings growth, towering over other sectors.
Health Care isn’t far behind, slated for a +16.8% surge, with stalwarts like UnitedHealth and Johnson & Johnson leading the charge.
Meanwhile, Information Technology boasts a robust +16.4% anticipated growth, with luminaries Microsoft and Nvidia at the forefront.
The Energy sector is forecasted to deliver a solid +12.4% in year-over-year earnings growth, anchored by industry giants like ExxonMobil and Chevron.
On the flip side, the Materials sector anticipates a significant -9.7% downturn, marking the most substantial decline across all sectors.
The Industrial sector, including firms like Caterpillar and Boeing, faces a 3.4% slide in EPS, marking it as one of the weakest performers.
Conversely, sales growth for the S&P 500 is expected to climb by +4.6%, presenting a slightly less optimistic picture compared to historical averages.
Strategic Moves for Now
Markets march into the earnings season on a high note, with both S&P and NASDAQ hitting record highs amidst speculations of a forthcoming Fed interest rate cut.
Amid this backdrop, leveraging the InvestingPro Stock Screener to unearth companies poised for 25%+ growth in both profit and sales emerges as a strategic priority.
The screen reveals just 19 discerning stocks that fit the bill.
Employing the potent InvestingPro tool empowers investors to hone in on high-growth equities with significant upside potential.
Technology enthusiasts can keep an eye on names like CrowdStrike, Nvidia, and Cloudflare within this select group.
Moreover, entities like Newmont Corporation and MercadoLibre stand out as prime candidates for double-digit earnings and revenue expansions.
For existing InvestingPro subscribers, the full list of these compelling performers awaits your perusal.
Strategize wisely to capitalize on the earnings season’s lucrative opportunities ahead.