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

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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.

 

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