Part 4/8:
John Butters, a senior earnings analyst at FactSet, joined the discussion, offering insights into the current earnings season. Analysts had started with a projected growth rate of 14.5% for the S&P 500, which was gradually lowered to 11.5% due to increased negative guidance. Yet, even with this decline, anticipated earnings growth remained the highest for the index in three years.
Analysts pointed out that, historically, companies tend to beat expectations during earnings season, hinting that the actual growth might rebound closer to the original forecast. Butters highlighted the critical sectors to watch, with financial services leading the pack with a 40% projected growth, and communication services and technology also showing strong prospects.