Macro Research US Equities: Q2 Earnings Season Surpasses Ex | FSMOne SG - Research Highlights

Macro Research

US Equities: Q2 Earnings Season Surpasses Expectations – All You Need To Know About It

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• The US Q2 earnings season has been positive, as it has generally shown positive earnings surprise (by 17%) as well as strong earnings growth (by 93.7% QoQ).

• Earnings are also becoming more broad-based, with all sectors showing positive earnings growth, and all but one sector (utilities) showing double-digit earnings growth.

• When comparing to previous bear markets in history, as well as with other DMs in the present, we also find that this earnings season has performed favourably.

• Macro outlook remains strong, but valuations are a major concern – there may be some frontloading of estimates.

• Overall, we are positive on US growth, but think that much of this positivity has already been priced in.

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: Active approach - JPMorgan Funds - US Small Cap Growth A (dist) USD / Wells Fargo US Large Cap Growth Fund Cl A Acc USD;
Passive approach - Vanguard S&P 500 ETF (NYSE:VOO)