We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Technology Select Sector SPDR ETF (XLK) - free report >>
Health Care Select Sector SPDR ETF (XLV) - free report >>
SPDR S&P Retail ETF (XRT) - free report >>
Consumer Discretionary Select Sector SPDR ETF (XLY) - free report >>
Image: Bigstock
5 Sector ETFs to Play for Revenue Growth in Q4
The fourth-quarter (Q4) earnings reporting cycle is ongoing. Though investors' top focus remains on bottom line during an earnings reason, top line probably tells you more about the inherent strength of a company.
Per Earnings Trends issued on Jan 31, 2023, 35.2% of the S&P 500 companies have reported so far in Q4 with 1.7% increase in earnings and 2.6% growth in revenues. In Q4, 12 out of Zacks classified 16 sectors of the S&P 500 witnessed an expansion in revenues so far while eight sectors reported earnings growth.
Further, investors should note that sales are harder to be influenced in an income statement than earnings. A company can land up on decent earnings numbers by adopting cost-cutting or some other measures that do not speak for its core strength. But it is harder for a company to mold its revenue figure.
Below, we highlight five sectors and their related ETFs that could be used to book some profits on revenue growth.
Sector ETFs in Focus
Consumer Discretionary – Consumer Discretionary Select Sector SPDR Fund (XLY - Free Report)
About 50.3% of the S&P 500 market cap has reported with earnings. The sector has seen 8.3% revenue growth in Q4 while its revenue beat ratio is 71.4%.
Retail – SPDR S&P Retail ETF (XRT - Free Report)
About 13% of the S&P 500 market cap has come up with earnings result. The sector has reported 6.8% revenue growth in Q4 while its revenue beat ratio is 62.5%.
Medical – Health Care Select Sector SPDR ETF (XLV - Free Report)
About 41.1% of the S&P 500 market cap has reported so far. The sector has recorded 5.8% revenue growth in Q4 92.3% of companies beating on top line.
Technology – Technology Select Sector SPDR ETF (XLK - Free Report)
About 46.8% of the S&P 500 market cap has reported so far. There was 6.6% revenue growth in Q4 with 75% of companies beating on revenues.
Aerospace – iShares U.S. Aerospace & Defense ETF (ITA - Free Report)
About 86.9% of the S&P 500 market cap has reported so far. There was 7.1% revenue growth in Q4 with 75% of companies beating on revenues.