CITIC Securities: High U.S. equity earnings growth may no longer be concentrated solely among leading technology companies
BIBIBI
AT A GLANCE
CITIC Securities said that high U.S. equity earnings growth may be extending to non-technology industries.
Article
CITIC Securities: High U.S. equity earnings growth may no longer be concentrated solely among leading technology companies
PANews October 11 According to PANews, CITIC Securities said in a research report that, as the performance of U.S. equities during the domestic long holiday became less sensitive to interest rates, investors’ focus will shift next week to the upcoming third-quarter earnings reports of U.S. companies.LSEG Consensus estimates show that the S&P ’s 500 26Q3 revenue and earnings year-on-year growth rates will reach 1.2%/45.0%, respectively, representing a sequential decline. At the industry level, year-on-year earnings growth in energy, information technology, materials, and health care has exceeded 50%. High U.S. equity earnings growth may no longer be concentrated solely among leading technology companies, and the earnings contribution from non-technology sectors is increasing significantly. For Hong Kong stocks, although the overseas rate-hike cycle is compounded by the resumption of AI momentum trading, liquidity remains under pressure. However, fundamental expectations have bottomed out, and earnings growth expectations for major broad-based indexes have begun to be revised upward. Industry earnings expectations have diverged significantly, with some subsectors revised upward, while earnings expectations for domestic-demand-related industries remain under downward pressure. Subsequently, the three...
Key points
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CITIC Securities said in a research report that investors’ focus will shift to the upcoming third-quarter earnings reports of U.S. companies.
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LSEG Consensus estimates show that the S&P ’s 500 26Q3 revenue and earnings year-on-year growth rates are 1.2%and 45.0%。
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Year-on-year earnings growth in energy, information technology, materials, and health care has exceeded 50%。
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The report said that high U.S. equity earnings growth may no longer be concentrated solely among leading technology companies.
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The report said that expectations for Hong Kong stocks’ fundamentals have bottomed out, and earnings growth expectations for major broad-based indexes have begun to be revised upward.
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The report said that liquidity in Hong Kong stocks remains under pressure, while earnings expectations for domestic-demand-related industries remain under downward pressure.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
This restatement of the research report suggests that U.S. equity earnings growth may no longer depend primarily on leading technology companies, while energy, information technology, materials, and health care also show relatively high expected earnings growth. For Hong Kong stocks, earnings expectations show signs of improvement, but liquidity remains under pressure.
Why it matters to readers
If earnings growth in non-technology industries is confirmed in the third-quarter earnings reports, the market’s assessment of the sources of U.S. equity earnings may broaden; Hong Kong stocks, meanwhile, face both improving fundamental expectations and liquidity pressure.
Earnings growth reflects changes in companies’ ability to generate profits; the more diversified the sources of industry earnings, the lower the market’s potential dependence on any single industry, but expectations do not equal actual results.
Risks and unknowns
The original text is truncated at “subsequently, the three...”; the subsequent content is unknown.
The data in the article represent consensus estimates or forward-looking judgments; actual third-quarter earnings results do not appear in the evidence.
The evidence does not specify 26Q3 the specific meaning of the year(s).
The evidence does not provide the specific names of the major broad-based Hong Kong stock market indices or their earnings growth figures.
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Consensus estimates
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