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Semiconductor ETFs in Spotlight Ahead of Q2 Earnings
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The semiconductor space has been seeing huge investor interest this year amid the weakness in stock prices. Investors are betting that the industry will rebound from the supply-chain hitches and chip shortages that have pushed the stocks lower.
iShares Semiconductor ETF (SOXX - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) and First Trust NASDAQ Semiconductor ETF (FTXL - Free Report) have plunged nearly 5% each over the past three months. The weak trend might reverse in the weeks ahead as the Q2 earnings season unfolds. Texas Instruments (TXN - Free Report) came up with robust results, beating revenue and earnings estimates for the second quarter. It also guided solid revenues for the ongoing quarter, citing easing COVID-19 lockdowns in China. The result is expected to provide fuel to the sector.
Some other well-known players in the space like Intel (INTC - Free Report) , Qualcomm (QCOM - Free Report) , NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) will report earnings in the coming days. Let’s delve into the financial picture of the companies that have a higher allocation in the above-mentioned ETFs and the power to move the funds up or down as Q2 earnings unfold. SOXX is largely concentrated on four firms with a combined share of 26.3%, followed by 23.6% for SMH and 15.2% for FTXL.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Earnings Prediction
Intel is slated to release earnings after market close on Jul 28. It has a Zacks Rank #4 and an Earnings ESP of -9.01%. The stock saw negative earnings estimate revision over the past 30 days for the to-be-reported quarter. Intel delivered an earnings surprise of 26.17%, on average, for the preceding four quarters.
Qualcomm has a Zacks Rank #3 and an Earnings ESP of -0.63%. The stock witnessed no earnings estimate revision over the past 30 days for the to-be-reported quarter and delivered an earnings surprise of 11.36% in the trailing four quarters, on average. The company is expected to report earnings after the closing bell on Jul 27 (see: all the Technology ETFs here).
NVIDIA, expected to report on Aug 24, has a Zacks Rank #4 and an Earnings ESP of -0.36%. The company delivered an earnings surprise of 5.30%, on average, over the past four quarters. It saw negative earnings estimate revision of a penny over the past 30 days for the quarter to be reported.
Advanced Micro Devices has a Zacks Rank #3 and an Earnings ESP of +1.66%. Its earnings surprise history is impressive, with the average beat being 18.53% for the preceding four quarters. The stock witnessed no earnings estimate revision over the past 30 days for the quarter to be reported. The company is slated to report earnings on Aug 2 after the closing bell.
Conclusion
Semiconductor ETFs might see smooth trading in the weeks ahead as SOXX, SMH and FTXL have a Zacks ETF Rank #1 or 2. This suggests outperformance in the weeks ahead.
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Semiconductor ETFs in Spotlight Ahead of Q2 Earnings
The semiconductor space has been seeing huge investor interest this year amid the weakness in stock prices. Investors are betting that the industry will rebound from the supply-chain hitches and chip shortages that have pushed the stocks lower.
iShares Semiconductor ETF (SOXX - Free Report) , VanEck Vectors Semiconductor ETF (SMH - Free Report) and First Trust NASDAQ Semiconductor ETF (FTXL - Free Report) have plunged nearly 5% each over the past three months. The weak trend might reverse in the weeks ahead as the Q2 earnings season unfolds. Texas Instruments (TXN - Free Report) came up with robust results, beating revenue and earnings estimates for the second quarter. It also guided solid revenues for the ongoing quarter, citing easing COVID-19 lockdowns in China. The result is expected to provide fuel to the sector.
Additionally, the bill, designed to encourage semiconductor manufacturing and set for voting this week, will provide a boost to the stocks if passed (read: Bet on Top-Ranked Semiconductor ETFs Amid Surging Sales).
Some other well-known players in the space like Intel (INTC - Free Report) , Qualcomm (QCOM - Free Report) , NVIDIA (NVDA - Free Report) and Advanced Micro Devices (AMD - Free Report) will report earnings in the coming days. Let’s delve into the financial picture of the companies that have a higher allocation in the above-mentioned ETFs and the power to move the funds up or down as Q2 earnings unfold. SOXX is largely concentrated on four firms with a combined share of 26.3%, followed by 23.6% for SMH and 15.2% for FTXL.
Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Inside Our Earnings Prediction
Intel is slated to release earnings after market close on Jul 28. It has a Zacks Rank #4 and an Earnings ESP of -9.01%. The stock saw negative earnings estimate revision over the past 30 days for the to-be-reported quarter. Intel delivered an earnings surprise of 26.17%, on average, for the preceding four quarters.
Qualcomm has a Zacks Rank #3 and an Earnings ESP of -0.63%. The stock witnessed no earnings estimate revision over the past 30 days for the to-be-reported quarter and delivered an earnings surprise of 11.36% in the trailing four quarters, on average. The company is expected to report earnings after the closing bell on Jul 27 (see: all the Technology ETFs here).
NVIDIA, expected to report on Aug 24, has a Zacks Rank #4 and an Earnings ESP of -0.36%. The company delivered an earnings surprise of 5.30%, on average, over the past four quarters. It saw negative earnings estimate revision of a penny over the past 30 days for the quarter to be reported.
Advanced Micro Devices has a Zacks Rank #3 and an Earnings ESP of +1.66%. Its earnings surprise history is impressive, with the average beat being 18.53% for the preceding four quarters. The stock witnessed no earnings estimate revision over the past 30 days for the quarter to be reported. The company is slated to report earnings on Aug 2 after the closing bell.
Conclusion
Semiconductor ETFs might see smooth trading in the weeks ahead as SOXX, SMH and FTXL have a Zacks ETF Rank #1 or 2. This suggests outperformance in the weeks ahead.