These stocks may have trouble living up to expectations for a big earnings turnaround this year

  • 📰 CNBC
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

According to Trivariate Research, investors should be overweight in healthcare and energy sectors, where companies will likely achieve their estimates better.

Analysts are predicting a major bounce back in earnings for several companies in the S & P 500 this year, but not all of these companies will live up to expectations, according to Trivariate Research. "Full year 2024 guidance has not been reduced. This in effect creates an 'implied' 2H of 2024 guidance that is perhaps excessively optimistic," CEO Adam Parker wrote Sunday. Parker's warning comes after S & P 500 reported earnings growth of 4.

Here are some of those names: Despite his overweight recommendation on health care, Parker pointed out that estimates for this year have consistently come down over the last six months for the first three quarters of this year, and that many larger companies — including AbbVie , Abbott Laboratories and Humana — have lowered their numbers. Pharmaceutical company AbbVie has a 5.1% differential between its second- and first-half expectations, while biotech Amgen has a 13.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines