3 Areas Of Focus As U.S. Earnings Strength Continues

2025-05-31 01:50:00 ET

Summary

• Q1 company earnings painted a picture of corporate health as markets entered a period of trade tumult.
• Fundamental Equities CIO Carrie King discusses the importance of staying invested amid volatility, and outlines where there may be opportunities for long-term, fundamental investors to take advantage of market nerves to add to positions within enduring investment themes.
• The best performing sector globally in 2025 has been the financial sector, driven by the continued boost from higher interest rates.

By Carrie King

The Q1 2025 earnings season showed us that U.S. companies started the year in a position of strength. Earnings for the S&P 500 grew more than 12% year-over-year, and sales expanded by 4.4%. Earnings outgrowing sales means that a strong period of U.S. profit margin expansion continues – a point I highlighted after Q4 2024 results came in. See the chart below. First quarter earnings were recorded before the tariff uncertainty shook markets in April. Yet, we know that, overall, companies should be able to absorb the shock of potentially higher prices and slowing demand....

Read the full article on Seeking Alpha

For further details see: