The April-June quarter of 2018 was plagued with worries, arising from the escalation of the trade war between the United States and other foreign nations, especially China. Though tariffs were imposed on the import of several goods for protecting the interest of U.S. domestic industries, it made many companies deal with higher raw material costs. Despite these issues, the strengthening global economy and the strong growth potential of the United States, along with favorable changes in its tax policy, have been well received by the markets. In the second quarter, the S&P 500 gained 2.9% while Nasdaq and NYSE witnessed an increase of 6.3% and 0.4%, respectively.
While many banking results have impressed with their results so far, important releases in this week and the next are going to be a major determinant in the movements of the U.S. equity market. We group the U.S. equity universe into 16 sectors.
Per the Earnings Outlook report published on Jul 19, roughly 9.6% of the S&P 500 companies have reported their results. So far, the group’s earnings have increased 23% year over year while its revenues have expanded 10%. Beat was measured at 89.6% for earnings and 83.3% for revenues.
For the second quarter, as a whole, earnings of the S&P 500 group is projected to grow 20.4% year over year while revenues are anticipated to increase 8.3%.
We believe that it will be interesting to watch how the earnings season unfolds for the Conglomerates sector. So far, none of the conglomerates have reported their results for the second quarter of 2018.
The sector’s earnings are projected to decline 12.6% year over year in the second quarter as compared with 5.6% growth registered in the last reported quarter. Revenues are anticipated to grow 4.3%, below 7% recorded in the first quarter.
What’s in Store for 2 Conglomerates: GE & HON?
Below, we discuss briefly the expectations from two conglomerate stocks, slated to report their numbers for the second quarter tomorrow, before the market opens.
General Electric Company (GE - Free Report) : This industrial conglomerate delivered better-than-expected results in two of the last four quarters while lagging estimates in the other two. Average earnings surprise was a positive 3.27%.
General Electric Company Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The April-June quarter of 2018 was plagued with worries, arising from the escalation of the trade war between the United States and other foreign nations, especially China. Though tariffs were imposed on the import of several goods for protecting the interest of U.S. domestic industries, it made many companies deal with higher raw material costs. Despite these issues, the strengthening global economy and the strong growth potential of the United States, along with favorable changes in its tax policy, have been well received by the markets. In the second quarter, the S&P 500 gained 2.9% while Nasdaq and NYSE witnessed an increase of 6.3% and 0.4%, respectively.
While many banking results have impressed with their results so far, important releases in this week and the next are going to be a major determinant in the movements of the U.S. equity market. We group the U.S. equity universe into 16 sectors.
Per the Earnings Outlook report published on Jul 19, roughly 9.6% of the S&P 500 companies have reported their results. So far, the group’s earnings have increased 23% year over year while its revenues have expanded 10%. Beat was measured at 89.6% for earnings and 83.3% for revenues.
For the second quarter, as a whole, earnings of the S&P 500 group is projected to grow 20.4% year over year while revenues are anticipated to increase 8.3%.
We believe that it will be interesting to watch how the earnings season unfolds for the Conglomerates sector. So far, none of the conglomerates have reported their results for the second quarter of 2018.
The sector’s earnings are projected to decline 12.6% year over year in the second quarter as compared with 5.6% growth registered in the last reported quarter. Revenues are anticipated to grow 4.3%, below 7% recorded in the first quarter.
What’s in Store for 2 Conglomerates: GE & HON?
Below, we discuss briefly the expectations from two conglomerate stocks, slated to report their numbers for the second quarter tomorrow, before the market opens.
General Electric Company (GE - Free Report) : This industrial conglomerate delivered better-than-expected results in two of the last four quarters while lagging estimates in the other two. Average earnings surprise was a positive 3.27%.
General Electric Company Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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