S&P 500 earnings are projected to rise 22% year-over-year, led by energy and tech sectors, as valuations improve.
Wall Street analysts have increased earnings estimates for multiple S&P 500 stocks amid declining share prices, improving valuations ahead of second-quarter results. Consensus forecasts show a 22% year-over-year rise in earnings per share, the strongest growth since the post-pandemic recovery.
Energy and information technology sectors are expected to lead, with EPS growth of 122% and 61%, respectively. The so-called Mag 7 stocks are projected to post about 30% earnings growth, while other sectors lag with roughly 5% growth, down from 24% in Q1.
Earnings visibility remains strongest in energy, semiconductors, and tech hardware, where results are more predictable. Historically, stocks beating estimates see modest gains, while misses trigger sharper declines.