SUPERNEWS

Macro

JD.com, Copa to Beat Estimates, S&P Stocks Shine

79% of S&P companies beat Q1 estimates, signaling strong market potential with tech stocks leading gains.

By Bill Bullington

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5/9, 15:30 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
Amazon.com, Inc.
Bio-Rad Laboratories, Inc.
Walt Disney Company
Alphabet Inc.
JD.com, Inc.
Meta Platforms, Inc.
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Key Takeaway

  • Nearly 79% of S&P companies have beaten earnings estimates this quarter, with JD.com and Copa Holdings among those expected to outperform next week.
  • JD.com has historically surpassed earnings expectations 82% of the time, influencing a stock increase of over 1% post-results.
  • Copa Holdings exceeded analyst predictions 77% of the time, with shares typically rising more than 2% following earnings announcements.

Earnings Season Surprises

Nearly 79% of the 450 S&P companies that have reported first-quarter earnings have surpassed Wall Street analysts’ estimates, according to FactSet data. This trend is noteworthy as it sets a positive tone for the market, indicating a potential for stock appreciation in companies that historically outperform earnings expectations. Companies like JD.com and Copa Holdings are among those anticipated to beat consensus earnings estimates, with JD.com having a history of exceeding Street earnings estimates 82% of the time and Copa Holdings surpassing analyst estimates 77% of the time on average.

Market Rally Potential

Despite the broader market's recent upturn, with the Dow Jones Industrial Average and S&P 500 each up roughly 3%, and the Nasdaq Composite adding 4%, some companies with strong balance sheets have been left behind. Stocks like Bio-Rad Laboratories, Walt Disney Co, and Super Micro Computer have seen declines over the past month but are poised for a rebound. These companies not only have a consensus buy rating but also show significant upside to their average price target, indicating potential for substantial gains.

Tech Stocks Lead the Charge

Tech stocks, particularly those benefiting from rate cut speculations, have significantly contributed to the market's recent rally. Companies like Meta, Alphabet, and Amazon have shown strong performance, buoyed by positive tech fundamentals and the potential for generative artificial intelligence. Additionally, optimism around Chinese tech stocks is growing, with analysts highlighting the sector's rebound and potential for further gains. Stocks such as Contemporary Amperex Technology Co., Ltd (CATL) and Foxconn Industrial Internet have outperformed the S&P 500, with analysts still seeing over 20% upside.