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UBS analysts highlighted the key contributors to S&P 500 earnings-per-share growth in the second quarter.
Analysts expect S&P 500 earnings per share to grow 7.8% in the second quarter, assuming typical revisions and surprises, with a final growth rate of 10.5-11% said Jonathan Golub, chief U.S. equity strategist at UBS Investment Bank.
On an equal-weighted basis, earnings per share are expected to grow 4.9%, and excluding technology stocks (XLK), earnings per share are expected to grow 2.5%.
Tech stocks are expected to outperform the rest of the market by a narrower margin than in the first quarter. Earnings per share of the six largest technology stocks are expected to grow by 31.7%, and earnings per share of the remaining ten largest technology stocks are expected to grow by 9.5%.
Energy (XLE) is also expected to see the fastest growth, while Materials (XLB) and Telecommunications (IYZ) are the slowest.
Here are the top 15 contributors to EPS growth this quarter:
- NVIDIA (NVDA) – Weight: 1.4%; EPS growth: 134.5%; Contribution to EPS growth: 1.9%
- Alphabet (GOOGL) – Weight: 3.4%; EPS growth: 27.6%; Contribution to EPS growth: 0.9%
- Meta Platform (META) – Weight: 1.4%; EPS growth: 57.3%; Contribution to EPS growth: 0.8%
- Amazon (AMZN) – Weight: 1.3%; EPS Growth: 57.3%; Contribution to EPS Growth: 0.7%
- Micron Technology (MU) – Weight: 0.3%; EPS growth: 135.6%; Contribution to EPS growth: 0.5%
- Exxon Mobil (XOM) – Weight: 1.9%; EPS Growth: 22.3%; Contribution to EPS Growth: 0.4%
- Microsoft (MSFT) – Weight: 4.3%; EPS growth: 8.9%; Contribution to EPS growth: 0.4%
- Allstate (ALL) – Weight: 0.3%; EPS growth: 107.8%; Contribution to EPS growth: 0.3%
- Progressive (PGR) – Weight: 0.1%; EPS growth: 438.5%; Contribution to EPS growth: 0.2%
- Western Digital (WDC) – Weight: 0.1%; EPS growth: 157.9%; Contribution to EPS growth: 0.2%
- Apple (AAPL) – Weight: 3.9%; EPS growth: 5.2%; Contribution to EPS growth: 0.2%
- General Motors (GM) – Weight: 0.5%; EPS growth: 40.8%; Contribution to EPS growth: 0.2%
- Warner Bros. Discovery (WBD) – Weight: 0.2%; EPS Growth: 66.1%; Contribution to EPS Growth: 0.2%
- Travelers Corporation (TRV) – Weight: 0.0%; EPS growth: 4907.7%; Contribution to EPS growth: 0.1%
- Broadcom (AVGO) – Weight: 1.0%; EPS growth: 13.7%; Contribution to EPS growth: 0.1%
