We’ll give the Energy sector a break for a few weeks and let the dust settle on the 20% drop in crude oil over the last 2 months,
Since companies are now reporting their 3rd quarter, 2014 and guiding for the 4th quarter, based on an intra-week report update from Thomson Reuters, here is how sector earnings growth expectations have changed for the q4 ’14 and the SP 500 since Oct ‘1 ’14:
First column is the sector, 2nd column is the expected growth as of October 20th, ’14, the 3rd column is the expected growth as of October 1:
Cons Disc: +12%, +13.9%
Cons Spls: +3%, +4.5%
Energy: -1.4%, +6.4% (estimates falling rapidly, hard to say how much is discounted in stock prices);
Financials: +9%, +10.4%
Health Care: +18.7%, +19.3%
Industrials: +12.2%, +12.4%
Basic Mat: +6.5%, +10%
Technology: +10.5%, +10.4%
Telco: +22.1%, +23.5%
Utilities: +7.4%, +7.8%
SP 500: +9.5%, +11%
Despite IBM, and maybe due to Apple, Technology is the ONLY sector with higher expected sector growth from 10/1/14 to 10/20/14.
Good sign.
We’ll have a more complete update this weekend.
Trinity Asset Management, Inc. by:
Brian Gilmartin, CFA
Portfolio manager