Analysts expect earnings reports to recover tech sector

Jul. 07, 2017 3:03 PM ETIXN, IXP, PNQI, IPK, IST, NXTG, GAMR, SKYY, SOCL, AAIT, ROBO, ARKQ, ARKW, ARKK, BST, HACK, EMQQ, XT, CIBR, BIGD, HAKK, HAKD, FINQ, IMED, FINX, SNSR, BOTZ, ARVR-OLDBy: Brandy Betz, SA News Editor6 Comments
  • Analysts tell Reuters the tech sector will recover from recent pullbacks with upcoming earnings reports wooing back investors worried about overvaluation and crowding.
  • The sector had dropped 4% since early June compared to a 5% growth in financials and 3% growth in healthcare.  
  • Semiconductors drove tech’s Q2 earnings up 11.2% with a growth rate of 7.2%, according to Reuters estimates. Compare the figures to a 7.9% earnings improvement for the S&P 500 with a 4.6% growth rate. 
  • Analysts say tech isn’t as overvalued as investors fear as the sector currently trades at 18.1x earnings compared to 17.8x for the broad market. 
  • Estimates put tech’s profits at 28% of the total S&P 500 earnings growth in Q2.  
  • Tech ETFs: HACK, ROBO, SOCL, SKYY, CIBR, BOTZ, PNQI, IXP, XT, SNSR, EMQQ, IPK, IXN, BST, ARKW, IST, GAMR, ARKK, ARKQ, FONE, BIGD, WEAR, FINX, FINQ, HAKK, AAIT, HAKD, IMED.

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