SFS Insights: Communication Services Stealing the Show During Earnings Season
- S&P 500 earnings per share (EPS) are now tracking to a 4.2% increase for the fourth quarter, up 0.4 points over the past week and five points over the past three weeks.
- Strong earnings from the key growth sectors (the three where the Magnificent 7 reside) have more than offset drags from energy, financials, and healthcare.
- The key growth sectors, namely communication (comm) services, consumer discretionary (CD), and technology, have contributed about 10 points combined to S&P 500 EPS.
- The consensus 2024 S&P 500 EPS estimate is down just 0.6% year to date, unchanged over the past three weeks, on reassuring guidance overall. If a soft landing is achieved, double-digit S&P 500 EPS growth in 2024 is not out of the question.
