2024-04-16 12:29:51 ET
Summary
- The S&P 500 is expected to grow earnings by 10.8% this year, with projected sales growing 4.8%.
- The Information Technology sector is expected to outpace the S&P 500 in sales projections, led by the semiconductor complex of stocks.
- Invesco PHLX Semiconductor ETF provides attractive opportunities to buy at current levels with a low expense ratio.
- The semiconductor market is projected to grow by a strong +20% this year, with momentum increasing through FY26.
Investment Thesis
Markets finally appear to show some signs of moderating their YTD gains in line with future expectations of the underlying revenue growth and earnings growth in the S&P 500. Per FactSet’s latest consensus estimates , the S&P 500 is expected to grow earnings by ~10.8% this year, while earnings are expected to continue growing to ~13.4% in FY25. These consensus estimates reflect strong earnings growth, which will be supplemented by stronger than usual top-line numbers, with projected sales growing ~4.8% this year, while FY25’s projected sales for the broader markets are expected to grow by a robust 5.9%....
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SOXQ: Cheap Exposure To Nvidia, Broadcom, And Other High-Quality Semiconductor Stocks