📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Upcoming Q2 earnings season implies Big Tech will continue to dominate: Barclays

Published 10/07/2024, 09:18 pm
© Reuters.

Barclays (LON:BARC) analysts say the dominance of Big Tech is likely to continue in the upcoming Q2 earnings season.

In a note to clients Wednesday, the bank highlights Big Tech's outsized contribution to the S&P 500's performance in the first half of 2024, delivering "42% returns vs. the rest of the SPX at +8%."

Barclays expects this trend to hold, with "consensus estimates implying that Big Tech earnings growth will continue to dominate in 2Q24, with nearly +32% EPS expansion expected vs. the rest of the SPX at +3.3%."

This comes despite a projected slowdown in Big Tech's year-over-year growth, following a strong first quarter and even stronger fourth quarter in 2023.

The report also acknowledges the potential for increased volatility in the second half, noting that "the third quarter is typically the choppiest in any given year." However, they project a broader pickup in earnings growth across the market later in the year, with the S&P 500's EPS expected to reach $65 by the fourth quarter.

Outside of Big Tech, Barclays says consensus looks to Healthcare and Energy for a modest upside contribution, while Materials and Industrials are expected to detract.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.