🎁4 Sectors to Win Q1 2023 Earnings Season？Share Your Trading Plan

Capital_Insights
2023-04-11

Wall Street's Q1 2023 earnings season kicks off at the end of this week, with notable names like $JPMorgan Chase(JPM)$, $Bank of America(BAC)$, $Citigroup(C)$, $Wells Fargo(WFC)$ ,$UnitedHealth(UNH)$ and $Delta Air Lines(DAL)$ all set to report their latest financial results.

Investors are bracing for what may be the worst reporting season in more than two years amid a toxic combination of several macroeconomic headwinds, including rising interest rates, persistently high inflation, slowing economic growth, as well as ongoing supply chain disruptions, and labor shortages.

Detailed forecasts for Q1 2023

According to FactSet report, Material, Real estate, Utilities, and Financials sectors would show positive EPS guidance vs. 5-Year Avg.

4 Other Key Metrics For Q1 2023

 Earnings Decline: , the estimated earnings decline for the $S&P 500(.SPX)$ is -6.8%. If -6.8% is the actual decline for the quarter, it will mark the largest earnings decline reported by the index since Q2 2020 (-31.8%).

 Earnings Revisions: the estimated earnings decline for Q1 2023 was -0.3%. Ten sectors are expected to report lower earnings (compared to Dec. 31) due to downward revisions to EPS estimates.

 Earnings Guidance: 78 s $S&P 500(.SPX)$ companies have issued negative EPS guidance and 28 companies have issued positive EPS guidance.

 Valuation: The forward 12-month P/E ratio for the S&P 500 is 18.0. This P/E ratio is below the 5-year average(18.5) but above the 10-year average (17.3).

Highlights of Q4 2022

What is the S&P 500 reporting for a net profit margin for the fourth quarter of 2022?

From the data of Factset: The (blended) net profit margin for the S&P 500 for Q4 2022 was 11.4%, which is below the Q3 2022's11.9% and below the Q4 2021’s 12.4%. However, it was equal to the 5-year average net profit margin of11.4%.

At the sector level, We see four sectors reported a YoY increase in net profit margins in Q4 2022, led by the Energy sector, Information Technical, Finacials, and Real Estate sector. On the other hand, seven sectors reported decrease in Q4 2022.

It is interesting to note that analysts believe net profit margins for the $S&P 500(.SPX)$ will be higher going forward. As of today, the estimated net profit margins for Q1 2023, Q2 2023, Q3 2023, and Q4 2023 are 11.9%, 12.1%, 12.3%, and 12.2%, respectively.

Questions For You:

Guess which bank is a big winner by stock performance this week ?

Share your Wisdom to Trade Q1 Earnings Season

🎁Prizes

  • 🐯 All valid comment on the following post will receive 5 Tiger Coins.

  • 🐯 The First 10 and Last 10 Commentator with qualified comments will receive another 10 Tiger Coins.

  • 🐯 TOP 5 high-quality comments will recieve Another 20 TigerCoins .

⏰Duration

  • 20 April (24pm EDT)

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • koolgal
    2023-04-14
    koolgal

    🌟🌟🌟Investors cheered today as PPI data confirmed the easing inflation trend as March's consumer price index only advanced 0.1% month over month.   Optimism is back and it is great news as$JPMorgan Chase(JPM)$ 

    will be reporting its 1st quarter earnings on Friday.   JPMorgan is the largest bank in the US and the world's largest bank by market capitalisation. 

    I am bullish on JPMorgan as analysts expect its earnings to jump 29% to USD3.41 per share on 17.7% revenue growth to USD 36.13 billion. 

    JPMorgan share price is up 1.25% in the past 5 days but down 4.5% year to date.  Wall Street Analysts are also bullish on JPMorgan with a BUY rating, Target price of USD153. 00, an upside potential of 19%.

    I believe that JPMorgan is a good long term buy as it ticks all the core fundamentals of a quality stock.  Best of all it pays great dividends too. The current dividend yield is 3.1% while waiting for capital growth. 

    JP Morgan will be a strong winner this week! 

    @Capital_Insights  



  • LMSunshine
    2023-04-12
    LMSunshine
    I think JPM or BAC will be the big winner this week as customers flocked to bigger banks for safety.Comment for 5 coins😉
    @SR050321 @CYKuan @HelenJanet @rL @Universe宇宙 @Jadenkho @melson @Mrzorro @GoodLife99 @SPOT_ON @Kaixiang @BenjiFuji @RDPD富爸穷爸 @SirBahamut @b1uesky @MHh @PJoo @Pepermintpat @RiciaYang @jat @Omega88 @爱上投资学 @Zeniv @Elon2 @Yonhuat @Joker_Smile @grizzlylee @FrankieRed @spkek @snoopy123 @psk @pekss @amroui @Ericdao @StickyRice @StarLuck @Shyon @Success88 @kungpao @CL Wong @Derrick 1234 @MeowKitty @Thonyaunn @紫南 @Zarkness @Ah_Meng @Ratt @Tigress02 @Viv22 @aunteenat @Cory2 @airui @0QH @Cris0 @Brocco @AhGong @deal2deal @Ccl2 @Lcc73 @HLPA @markele @pipiso @hlw8888 @Huiz84 @Kingcat @Jo_Tan @RedpillBluep @Furore @breAkdaWn @boardy @Cory2 @Soyabean89 @ngph @KYHBKO @Lionel8383 @Downton @SanWangtikup @Setia100 @th0mastan @LesterTan @IAS @HSTew @Kerrisdale @PhilipChow @alylady @moliya @maricel @Sonoma @LuckyPiggie @Doge2theMoon @equitygenius @StayHome @SGboy @Sandyboy @Stayclose
  • LMSunshine
    2023-04-12
    LMSunshine
    I think JPM or BAC will be the big winner this week as customers flocked to bigger banks for safety.Comment for 5 coins😉 Thanks loads @Capital_Insights for the post❣️@DMTrader @BettyT @Bunta @tigjun21 @JohnL @jace0777 @DoreamonGo @TTrade @VonCat @boonk @Trevelyan @jgaldon @fxaw @Kok @Agxm @Dodonan @BubTigger @Niskil @OddEyeCircle @StarAce @zerolih @WuDi @Asphen @MasterStonker @MoneyCub @MiniAce @StayCalm @ee244c @Huangyulee @tarotsgirl @Lord_Kuberan @ShengSoon @Decromer @jllwang @Shiella @cristine @Gunawanh @WLing @Zash @Snoopymint @GrumpyDino @YTGIRL @VivianChua @MSJYJ @YJ13 @Bons @bernardtayet @Kindryl @angyenyen @KBWSG @JazzyTizzy @icycrystal @KryZ @Alupigus @tigernoob @MojoStellar @aiyoh79 @drandy @eeth @Zack44 @Cyberguard @kaite @BlueDragon @Tonyoh @AlfonsoDex @nerdbull1669 @InvisibleTig @AlanTiger @kwk @InvisibleP @miaomiao007 @TigerHulk @MGOH @Alconies @justforcoins @cubinvestor @我i168 @Zacv @ZeroG @JennyChiang @Star0331
  • Shyon
    2023-04-12
    Shyon
    For me, I will choose for $JPMorgan Chase(JPM)$ will be a big winner by stock performance this week after the earnings call at the end of this week. 😍 Other than financial sector, energy is another sector that performs well.

    @LMSunshine @Aqa @Universe宇宙 @GoodLife99 @HelenJanet @rL

  • Bons
    2023-04-13
    Bons
    $JPMorgan Chase(JPM)$ is the largest US bank out there if I'm not wrong, but I'm still betting my money in the still dip of the $Bank of America(BAC)$ . hopefuly it pay well in the end.
    what's your bank pick guys @Viv22 @LMSunshine @KYHBKO @Tigress02 @Universe宇宙 @kungpao @wine18 @cindyft @Xian789 @MTok
  • GoodLife99
    2023-04-12
    GoodLife99
    I choose $Wells Fargo(WFC)$! as it's looks promising base on the current moment, my guess only, haha!
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