With the third quarter well underway and most second-quarter earnings now in the rearview mirror, investors are starting to look ahead to the rest of 2026 and how best to position their portfolios. – Unlock powerful investing tools with TipRanks Premium to make smarter, more…
nfident investment decisions – Subscribe to TipRanks Smart Investor Newsletter, and discover new investing opportunities with data-backed stock picks The good news is that the latest earnings season has given investors plenty to work with. According to FactSet, S&P 500 earnings are on track to rise about 50% year-over-year in the second quarter, which would mark the index’s strongest earnings growth since Q2 2021
Meanwhile, profit margins are on track to reach nearly 17%, their highest level in more than 15 years. And the strength could have staying power. If current estimates hold, 2026 would mark the third consecutive year of double-digit earnings growth for the S&P 500, something the market has not seen in two decades.
That gives investors a strong fundamental backdrop heading into the remainder of the year. Citi strategist Scott Chronert believes the next phase of the market’s run could become less concentrated, with gains continuing to broaden beyond the stocks that have done much of the heavy lifting. “With Q2 earnings mostly behind us, we lift our full year S&P 500 index estimate to $365 from a previous $350. The fundamental tailwinds supporting our year-end 8100 target remain mostly in place.