Home page Company name and slogan

Custom Search
Investment Newsletters Best Fidelity Funds Best ETFs Get Free Reports 10-Year Journey Blog
MoneyMatters Logo

AlphaProfit MoneyMatters Investing Blog RSS Feed

Sam Subramanian

Top Sectors for the Third Quarter Earnings Season

Sam Subramanian PhD, MBA

The third quarter earnings reporting season should pick up steam in the coming weeks.

Analysts expect a positive reporting season.

According to FactSet, S&P 500 companies would grow their earnings 4.2% year-over-year in the third quarter. Revenues would grow 5.0%.

S&P 500 companies grew their earnings by 13.9% and 10.3%, respectively in the first and second quarters of this year.

Admittedly, EPS growth expectations for the third quarter are subdued compared to the first and second quarter tallies. Yet, third quarter EPS is expected to increase year-over-year and solidify the growth trend.

Analysts expect profit growth to benefit from favorable foreign exchange translation, growth in Asia, and the positive impact of acquisitions.

Third quarter earnings are projected to decline year-over-year in three of the eleven sectors. They are consumer discretionary, telecom services, and utilities.

Earnings growth in the third quarter is expected to be driven by energy, information technology, and real estate sectors.

S&P 500 quarterly earnings: Third quarter earnings outlook for sectors and stocks

S&P 500 quarterly earnings are forecasted to rise 4.2% in the third quarter with energy sector earnings contributing the most to growth.

The energy sector is predicted to show the highest year-over-year earnings growth. The unusually high 108.4% growth is largely due to abnormally low earnings in the year-ago quarter. The energy sector's total earnings are projected to rise to $9.5 billion in this year's third quarter from $4.6 billion a year-ago.

Sector heavyweights, ExxonMobil (XOM), Chevron (CVX), Schlumberger (SLB), and Halliburton (HAL) are all expected to show healthy year-over-year increases in third-quarter earnings with ExxonMobil's 31.7% growth being the slowest.

The information technology sector is expected to grow third-quarter earnings by 8.5%, making it the second highest of all sectors. The semiconductor & semiconductor equipment companies are forecasted to spearhead growth here.

Micron Technology (MU) is expected to be the largest contributor to this sector's earnings growth. Micron is expected to earn $1.82 a share in this year's third quarter, reversing a loss of $0.05 a share in the year-ago period.

Among the top companies in the information technology sector, Apple (AAPL) and Facebook (FB) are predicted to post double-digit EPS growth. Notably, Alphabet's EPS is expected to drop 8.2%.

The real estate sector is expected to report the third highest growth year-over-year. The real estate sector uses funds from operations (FFO) as its profit measure as opposed to earnings. The sector's FFO is expected to grow 7.0% from the year-ago quarter.

The sector's profit growth is expected to be driven by real estate investment trusts serving telecom service and technology companies. Cellular tower operator American Tower (AMT) and Equinix (EQIX), a provider of data center services to cloud computing companies, are expected to grow FFO over 40.0%.

AlphaProfit's Investment Selection Process

You need a time-tested, proven investing strategy to protect and grow your money in this challenging market.

To increase the odds of selecting winning sector ETFs & selecting winning Fidelity Select Funds, AlphaProfit evaluates sectors on valuation, momentum, and news quality with EPS growth being one of the news quality metrics.

This multi-factor analysis ensures investments in the chosen sector are attractively priced and have the catalysts needed to sustain growth in future.

Fully 75% of investments selected by AlphaProfit have made money ... and this includes the 2008 financial crisis and the dot-com bust at the turn of the millennium.

The high percentage of winning investment selections translates into lower risk and higher return for AlphaProfit Premium Service investment newsletter subscribers.

AlphaProfit's Free Investment Newsletter MoneyMatters

Compounding at an annual rate of 18.6%, a dollar invested in AlphaProfit's selection process in 1994 is now worth $57.41 while a comparable investment in the S&P 500 is worth just $8.55.

Consistent selection of winning mutual fund picks has enabled AlphaProfit's Premium Service to rank #1 in Hulbert Financial's investment newsletter rankings multiple times.

Sign up for AlphaProfit's FREE investment newsletter MoneyMatters and get two special reports:
Five Smart Ways of Using Fidelity Select Funds and Avoid Three Common Mistakes ETF Investors Make.

Related Articles:
Sector ETFs: Invest in the Best Sector ETF Consistently
Fidelity Select Funds: Choose the Best Fidelity Sector Fund Consistently
AlphaProfit Free and Premium Investment Newsletters


Protect & grow your wealth with
investment recommendations from free e-letter
AlphaProfit MoneyMatters

By Hulbert #1 rank winner Dr. Sam Subramanian

'Incisive Insights, Impressive Results'   - Jim Woodruff

First Name:

Email Address:

We respect your privacy. We will not spam or sell your information to others, period.

Popular How-To Guides

Custom Search

Recent MoneyMatters Articles

More from Investing Blog Sign Up for Free e-letter

About AlphaProfit MoneyMatters and AlphaProfit
AlphaProfit MoneyMatters is a free e-letter distributed to registered users of AlphaProfit's website. The e-letter analyzes the economy, markets, and sectors and provides money-making insights on stocks, exchange-traded funds, and mutual funds. AlphaProfit MoneyMatters is edited by Dr. Sam Subramanian acclaimed for his financial acumen and analytical skills.

AlphaProfit Investments, LLC is an independent investment research firm based in Sugar Land, TX. AlphaProfit publishes the AlphaProfit Sector Investor's Newsletter, edited by Dr. Sam Subramanian. Leveraging sector funds, the Newsletter provides high-performance model portfolios with Fidelity funds and exchange-traded funds. It also includes actionable stock recommendations. This newsletter features among MarketWatch's top 10 investment newsletters and has won the coveted #1 rank from Hulbert Financial several times.

Copyright Policy and Fair Use Guide
You are welcome to quote a short excerpt of the article not exceeding 100 words with attribution in the form of a hyperlink to the article's full URL or https://www.alphaprofit.com. If you wish to republish the article in full on your website, blog, or other media, you must obtain permission.

AlphaProfit MoneyMatters™ is for information purposes only. Nothing herein should be construed as an offer to buy or sell securities or to give individual advice on investing. Factual material is obtained from sources believed to be reliable and is provided without warranties of any kind. AlphaProfit Investments, LLC is not responsible for any errors or omissions. AlphaProfit Investments, LLC neither is associated with nor receives any compensation from any of the investment companies, brokers or entities connected with the securities mentioned herein. Please review our Terms and Conditions of Use and Subscriber Agreement which is available on our website at www.alphaprofit.com; they govern your relationship with AlphaProfit Investments, LLC, including, but not by way of limitation, use of the AlphaProfit MoneyMatters.

This page is best viewed in 1024 by 768 pixels screen resolution or higher.
Copyright © 2017 AlphaProfit Investments, LLC. All rights reserved.