We see room for S&P 500 earnings to beat on low expectations: HSBC

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We see room for S&P 500 earnings to beat on low expectations: HSBC

According to HSBC,"S&P 500 Q3 earnings growth is expected at 4% year-on-year," a sharp decline from the 12% growth seen in Q2."Seven out of 11 sectors are expected to see a slowdown of earnings growth on a y-o-y basis, most especially financials, consumer discretionary, and utilities who face a tough comp base.

However, HSBC sees"room for earnings to beat on low expectations" driven by positive corporate guidance and a solid macroeconomic backdrop. The energy sector is forecast to drag down overall S&P 500 earnings, with a projected 20% year-on-year decline. Given the solid macro backdrop, HSBC anticipates"space for EPS beats" during this earnings season, especially in sectors with low expectations.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events.

 

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