Is this the weakest earnings season in the past four quarters? Still shining Big Tech stocks lead the US market's top 10 stocks.
The third quarter earnings season has started off strong. Major banks have taken the lead in the US earnings season, with their stock prices surging after the earnings reports. The earnings of banks provide further insights into the capital markets and consumer health. This Thursday, leading companies in the semiconductor and high-tech industry are scheduled to announce their earnings, with expectations that these companies will kick off the high-tech stock earnings season in earnest. The stock prices of both companies reached near all-time highs last Friday, or set new records. $JPMorgan (JPM.US)$and $Wells Fargo & Co (WFC.US)$The stock price of sea surged after the earnings announcement. The earnings of the bank, and the telecom services have provided further insights into the capital markets and consumer health. This Thursday, Koss Corp, a leading company in the semiconductor and technology industries, is set to announce its earnings, sparking expectations for the start of the high-tech stock earnings season. The stock prices of both companies reached near all-time highs last Friday, or set new records. $Taiwan Semiconductor (TSM.US)$and $Netflix (NFLX.US)$Koss Corp and csp inc are scheduled to announce their earnings this Thursday, and these companies are expected to kick off the high-tech stock earnings season. The stock prices of both companies reached near all-time highs last Friday, or set new records.
According to Bloomberg Intelligence, analysts believe that companies in the S&P500 indexhave reported the weakest performance in the past 4 quarters,and are expecting profits for the third quarter to increase by just 4.3% compared to the same period last year.Growth was expected to be 8.4% in mid-June, but the growth rate for the second quarter remained atIt is expected to remain at (an 8.4% growth was expected in mid-June). The growth rates for the previous three quarters were9.8％、13.1％、11.2％reached 4.3%.
Ahead of the earnings season, profit growth rate forecasts were revised downward by 320bps. The largest downward revision was in the energy sector at 1,670bps, followed by materials (-1,180bps) and industrials (-760bps). The only sectors with upward revisions were finance, information technology, and telecom services, with an increase of only 50bps.
On the other hand, according to UBS, the earnings growth rate per share of the S&P 500 index may slow from 11% in the second quarter to about 5-7%, with much of it coming from the energy industry due to the decline in oil and gasoline prices. Excluding the energy sector, the earnings growth rate of the S&P 500 index should be between 8-10%. And,Technology remains the fastest growing sector in terms of earnings growth rate in the previous quarter.becomes.
Among the 11 sectors in the S&P 500 index,technology、Telecom Services、Health CareThe three sectorsAn increase of over 10% is expected.On the other hand, energy is expected to decrease by over 20%.On the other hand, energy is expected to decrease by over 20%.A decrease of over 20% is forecasted.
LSEGによると、S&P500構成銘柄の中で利益成長に最も寄与度の高いトップ10社は以下の通り。ご覧の通り、「マグニフィセント7」のうち5社がトップ10入っており、ビッグテック株が今四半期も注目すべき重要なグループになる。LSEGによると、7社は合計で19%の利益成長率を誇っている。M7を除くと、S&P500第3四半期の増益率は2.1%に低下する。
Market performance estimates for big tech stocks are as follows.
しかし、Bloomberg Intelligenceのデータによると、これらのハイテク大手のRevenue growth is slowing down.(Approximately 19% growth in the current quarter), compared to last year'slevel exceeding 30%.Moreover, analysts are cautioning that simply exceeding quarterly estimates may not be enough to ignite Wall Street's enthusiasm. Investors are looking for strong future performance outlook, and the lack thereof could potentially push down stock prices.Seeking robust future performance outlook.its absence may push down stock prices.
expressed concern at Sequoia Capital whether leading high-tech companies can generate sufficient returns commensurate with massive AI investments, labeling this dilemma as 'the $600 billion AI problem.According to the company's analysis, assuming CSP maintains a 50% software margin and GPU operating costs are 50%, Nvidia needs a revenue target of $600 billion by the end of the fourth quarter from an annual $150 billion datacenter operating rate.
Despite the many risks involved, some high-tech stocks with currently low valuations may be attractive and draw investor interest. According to Dow Jones Market Data, the respective companies of the 'Magnificent 7' are trading at price-to-earnings ratios (PER) below this year's peak and, in particular, below the five-year average.Trading below the price-to-earnings ratio (PER) at this year's peak, with some notably lower than the five-year average.In particular, $Netflix (NFLX.US)$、 $NVIDIA (NVDA.US)$、 $Alphabet-C (GOOG.US)$is trading below the five-year average.
Source: LSEG, Commonwealth, FactSet, moomoo
This article uses automatic translation in part.
moomoo News Sherry
This article uses automatic translation in part.
moomoo News Sherry
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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