Rest of S&P 500 seen outpacing Mag 7 on Q3 earnings growth - Jefferies
SPY•SPY•SPY•SPY•Adjusted third-quarter earnings for S&P 500 companies outside the Magnificent Seven are expected to rise 32%, versus 21.4% for the seven, Jefferies strategist Jane Gibbons said. The Mag 7 is expected to lead revenue growth, at about 23% versus 11%.
Adjusted third-quarter earnings for the rest of the S&P 500 are expected to grow 32%, compared with 21.4% for the Magnificent Seven, Jefferies strategist Jane Gibbons said in a note. Revenue is expected to grow about 23% for the Mag 7 and 11% for the rest of the index.
More than 120 companies have reported results so far, and third-quarter earnings are on pace to rise more than 30% from a year earlier, LSEG I/B/E/S data showed. Gibbons said AI productivity, spending and inflation remain key themes on earnings calls. Investors will focus on guidance from Alphabet, Microsoft and Amazon, which are set to report this week, including their capital spending plans and returns on those outlays.
