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UBS analysts highlighted the top contributors to EPS growth for the S&P 500 (SP500) during the second quarter.
S&P 500 EPS is forecasted to grow 7.8% in the second quarter, assuming a typical pace of revisions and surprises, with growth finishing at 10.5-11%, analysts, headed by Jonathan Golub, Chief US Equity Strategist for UBS Investment Bank, said.
EPS is expected to grow 4.9% on an equal weighted basis, and 2.5% if the technology stocks (XLK) are excluded.
The tech stocks are expected to outpace the rest of the market by a narrower margin than they had during the first quarter. The biggest six tech stocks are forecasted to have 31.7% EPS growth, and the rest of the top 10 tech stocks 9.5%.
Energy (XLE) is also expected to report the fastest growth, while materials (XLB) and telecommunications (IYZ) the slowest growth.
These are the top 15 contributors to EPS growth this quarter:
- Nvidia (NVDA) – weight: 1.4%; EPS growth: 134.5%; Contribution to the EPS growth: 1.9%
- Alphabet (GOOGL) – weight: 3.4%; EPS growth: 27.6%; Contribution to the EPS growth: 0.9%
- Meta Platforms (META) – weight: 1.4%; EPS growth: 57.3%; Contribution to the EPS growth: 0.8%
- Amazon.com (AMZN) – weight: 1.3%; EPS growth: 57.3%; Contribution to the EPS growth: 0.7%
- Micron Technology (MU) – weight: 0.3%; EPS growth: 135.6%; Contribution to the EPS growth: 0.5%
- Exxon Mobil (XOM) – weight: 1.9%; EPS growth: 22.3%; Contribution to the EPS growth: 0.4%
- Microsoft (MSFT) – weight: 4.3%; EPS growth: 8.9%; Contribution to the EPS growth: 0.4%
- Allstate (ALL) – weight: 0.3%; EPS growth: 107.8%; Contribution to the EPS growth: 0.3%
- Progressive (PGR) – weight: 0.1%; EPS growth: 438.5%; Contribution to the EPS growth: 0.2%
- Western Digital (WDC) – weight: 0.1%; EPS growth: 157.9%; Contribution to the EPS growth: 0.2%
- Apple (AAPL) – weight: 3.9%; EPS growth: 5.2%; Contribution to the EPS growth: 0.2%
- General Motors (GM) – weight: 0.5%; EPS growth: 40.8%; Contribution to the EPS growth: 0.2%
- Warner Bros. Discovery (WBD) – weight: 0.2%; EPS growth: 66.1%; Contribution to the EPS growth: 0.2%
- Travelers Companies (TRV) – weight: 0.0%; EPS growth: 4907.7%; Contribution to the EPS growth: 0.1%
- Broadcom (AVGO) – weight: 1.0%; EPS growth: 13.7%; Contribution to the EPS growth: 0.1%