The way Info Tech stocks outperformed the market over the last three months, investors might be expecting the sector’s Q1 earnings growth to be sky high. That won’t necessarily be the case, however, if analysts have things pegged right.
Info Tech firms, on average, could see a slight-to-moderate year-over-year earnings decline, depending on which research firm you consult. Many reasons come to mind, including slowing sales in parts of the semiconductor chip sub-sector, a bit slower (though still strong) growth in cloud computing amid increasing competition, and weaker iPhone performance from Apple (AAPL).