S&P 500 on Track for Eighth Consecutive Quarter of Double-Digit Earnings Growth
The S&P 500 index is on track to experience its eighth consecutive quarter of double-digit earnings growth, according to the latest data from TradingView. Total earnings in Q3 are expected to increase by +24.1% year-over-year, with revenues rising by +11.6%. This broad-based growth performance will be the most impressive in recent times.
Of the 16 Zacks sectors, 14 are expected to enjoy positive earnings growth in Q3, while six sectors are projected to experience double-digit growth. The Conglomerates sector is expected to decline by -35.2%, and Consumer Staples by -0.1%. Aerospace (+159.7%), Energy (+111.8%), Tech (+42.1%), Basic Materials (+29.7%), Transportation (+14.4%), and Industrial Products (+13.1%) are among the sectors that will see double-digit growth.
The semiconductor industry within the Tech sector is driving much of this growth, with Q3 earnings expected to increase by +85.5% on revenues up +62.8%. Excluding Nvidia (NVDA), Micron (MU), and Alphabet (GOOGL), which had an outsized gain in the preceding period, the rest of the Tech sector's earnings would be +20.6% higher than last year.