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Yahoo
5 hours ago
- Business
- Yahoo
Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Wells Fargo
Chicago, IL – June 26, 2025 – Zacks Director of Research Sheraz Mian says, "While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relative to other recent periods since the June-quarter got underway." Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: Total S&P 500 earnings for the June quarter are expected to be up +4.9% from the same period last year on +3.9% higher revenues. While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relative to other recent periods since the June-quarter got underway. Q2 earnings estimates for 13 of the 16 Zacks sectors have come down since the quarter got underway, with Aerospace, Utilities, and Consumer Discretionary as the only sectors whose estimates have modestly moved higher since the start of April. Q2 earnings estimates for the Tech and Finance sectors, the two largest contributors to aggregate S&P 500 earnings, accounting for 51% of all index earnings, have also been cut since the quarter got underway. The quarter started with significant pressure on Tech sector estimates, but the negative revisions trend notably stabilized in the subsequent weeks. In terms of year-over-year growth, three sectors are expected to enjoy double-digit earnings growth in Q2: Aerospace (+15.1%), Tech (+11.8%), and Consumer Discretionary (+105.6%). On the negative side, seven sectors are expected to earn less in Q2 relative to the year-earlier period, with double-digit declines at the Energy (-24.9%), Construction (-14.4%), and Autos (-30.2%) sectors. The Q2 earnings season will really get going once JPMorgan JPM, Bank of America BAC and Wells Fargo WFC kick-off the June-quarter reporting cycle for the Finance sector. The start of Q2 coincided with heightened tariff uncertainty following the punitive April 2nd tariff announcements. While the onset of the announced levies was eventually delayed by three months, the issue has understandably weighed heavily on estimates for the current and upcoming quarters, particularly in the first few weeks following the April 2nd announcement. The expectation at present is for Q2 earnings for the S&P 500 index to increase by +4.9% from the same period last year on +3.9% higher revenues. While it is not unusual for estimates to be adjusted lower, the magnitude and breadth of Q2 estimate cuts are greater than we have seen in the comparable periods of other recent quarters. Since the start of the quarter, estimates have come down for 13 of the 16 Zacks sectors, with the biggest declines for the Transportation, Autos, Energy, Construction, and Basic Materials sectors. The only sectors experiencing favorable revisions in this period are Aerospace, Utilities, and Consumer Discretionary. Estimates for the two largest earnings contributors to the index – Tech & Finance – have also declined since the quarter began. Tech sector earnings are expected to be up +11.8% in Q2 on +10.8% higher revenues. While these earnings growth expectations are materially below where they stood at the start of April, the revisions trend appears to have notably stabilized lately, as we have been flagging in recent weeks. This stabilizing turn in the Tech sector's revisions trend can be seen in expectations for full-year 2025 as well. The two charts above show that estimates for the Tech sector have stabilized and are no longer under the type of downward pressure experienced earlier in the quarter. The Tech sector is much more than just any other sector, as it alone accounts for almost a third of all S&P 500 earnings. While estimates for this year have been under pressure lately, there haven't been a lot of changes to estimates for the next two years at this stage. Stocks have recouped their tariff-centric losses, although the issue has only been deferred for now. While some of the more dire economic projections have eased lately, there is still plenty of macro uncertainty that will likely continue to weigh on earnings estimates in the days ahead, particularly as we gain visibility on the tariffs question. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC) : Free Stock Analysis Report Wells Fargo & Company (WFC) : Free Stock Analysis Report JPMorgan Chase & Co. (JPM) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
14 hours ago
- Business
- Globe and Mail
Zacks Earnings Trends Highlights: JPMorgan, Bank of America and Wells Fargo
For Immediate Release Chicago, IL – June 26, 2025 – Zacks Director of Research Sheraz Mian says, "While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relative to other recent periods since the June-quarter got underway." A Closer Look at Q2 Earnings: What Can Investors Expect? Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: Total S&P 500 earnings for the June quarter are expected to be up +4.9% from the same period last year on +3.9% higher revenues. While negative revisions to Q2 estimates have stabilized in recent weeks, estimates for the period have been under significant pressure relative to other recent periods since the June-quarter got underway. Q2 earnings estimates for 13 of the 16 Zacks sectors have come down since the quarter got underway, with Aerospace, Utilities, and Consumer Discretionary as the only sectors whose estimates have modestly moved higher since the start of April. Q2 earnings estimates for the Tech and Finance sectors, the two largest contributors to aggregate S&P 500 earnings, accounting for 51% of all index earnings, have also been cut since the quarter got underway. The quarter started with significant pressure on Tech sector estimates, but the negative revisions trend notably stabilized in the subsequent weeks. In terms of year-over-year growth, three sectors are expected to enjoy double-digit earnings growth in Q2: Aerospace (+15.1%), Tech (+11.8%), and Consumer Discretionary (+105.6%). On the negative side, seven sectors are expected to earn less in Q2 relative to the year-earlier period, with double-digit declines at the Energy (-24.9%), Construction (-14.4%), and Autos (-30.2%) sectors. The Q2 earnings season will really get going once JPMorgan JPM, Bank of America BAC and Wells Fargo WFC kick-off the June-quarter reporting cycle for the Finance sector. Making Sense of Earnings Expectations for 2025 Q2 and Beyond The start of Q2 coincided with heightened tariff uncertainty following the punitive April 2 nd tariff announcements. While the onset of the announced levies was eventually delayed by three months, the issue has understandably weighed heavily on estimates for the current and upcoming quarters, particularly in the first few weeks following the April 2 nd announcement. The expectation at present is for Q2 earnings for the S&P 500 index to increase by +4.9% from the same period last year on +3.9% higher revenues. While it is not unusual for estimates to be adjusted lower, the magnitude and breadth of Q2 estimate cuts are greater than we have seen in the comparable periods of other recent quarters. Since the start of the quarter, estimates have come down for 13 of the 16 Zacks sectors, with the biggest declines for the Transportation, Autos, Energy, Construction, and Basic Materials sectors. The only sectors experiencing favorable revisions in this period are Aerospace, Utilities, and Consumer Discretionary. Estimates for the two largest earnings contributors to the index – Tech & Finance – have also declined since the quarter began. Tech sector earnings are expected to be up +11.8% in Q2 on +10.8% higher revenues. While these earnings growth expectations are materially below where they stood at the start of April, the revisions trend appears to have notably stabilized lately, as we have been flagging in recent weeks. This stabilizing turn in the Tech sector's revisions trend can be seen in expectations for full-year 2025 as well. The two charts above show that estimates for the Tech sector have stabilized and are no longer under the type of downward pressure experienced earlier in the quarter. The Tech sector is much more than just any other sector, as it alone accounts for almost a third of all S&P 500 earnings. The Earnings Big Picture While estimates for this year have been under pressure lately, there haven't been a lot of changes to estimates for the next two years at this stage. Stocks have recouped their tariff-centric losses, although the issue has only been deferred for now. While some of the more dire economic projections have eased lately, there is still plenty of macro uncertainty that will likely continue to weigh on earnings estimates in the days ahead, particularly as we gain visibility on the tariffs question. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank of America Corporation (BAC): Free Stock Analysis Report Wells Fargo & Company (WFC): Free Stock Analysis Report JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Yahoo
29-05-2025
- Business
- Yahoo
Zacks Earnings Trends Highlights: Amazon, McDonald's, Walmart and Target
Chicago, IL – May 29, 2024 – Zacks Director of Research Sheraz Mian says, "Total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues." Zacks Director of Research Sheraz Mian says, "Total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues." Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: Total S&P 500 earnings for the June quarter are expected to be up +5.5% from the same period last year on +3.8% higher revenues, with a broader and greater pressure on estimates relative to other recent periods. Q2 earnings estimates for 15 of the 16 Zacks sectors are down since the quarter got underway, with Aerospace as the only sector whose estimates have moved higher. The Tech sector's estimates are down since the start of the period, but they have notably stabilized in recent weeks. The Q1 reporting cycle is now effectively behind us, with results from less than two dozen S&P 500 members still awaited at this stage. The Q1 earnings cycle has ended for 9 of the 16 Zacks sectors. Total Q1 earnings for the 477 S&P 500 members that have reported results are up +11.4% from the same period last year on +4.4% higher revenues, with 74.2% beating EPS estimates and 62.9% beating revenue estimates. Total Q1 earnings for the 28 of the 33 Retail sector companies in the S&P 500 index that have reported already are up +11.2% from the same period last year on +5.0% higher revenues, with 60.7% beating EPS estimates and 57.1% beating revenue estimates. Regular users of Zacks Research know that we have a stand-alone economic sector for the Retail sector, unlike the 'official' Standard & Poor's classification that places retailers in the Consumer Discretionary and Consumer Staples sectors. The Zacks Retail sector includes online vendors like Amazon AMZN, restaurant operators like McDonald's MCD and conventional retailers like Walmart WMT and Target TGT. These Retail sector companies have been struggling to beat EPS and revenue estimates. The group's +11.2% earnings growth drops to a decline of -5.0% once Amazon's substantial contribution is excluded from the numbers. If we look at Retail sector earnings on an annual basis, the expectation is for +4.1% earnings growth this year, which follows +22.7% growth in 2024. But as we saw with the Q1 earnings results, all of that growth is coming from Amazon, with this year's +4.1% earnings growth dropping to -0.6% and last year's +22.7% dropping to +1.8% once Amazon's contribution is excluded from the sector's numbers. A significant part of the sector's earnings challenge is a result of margin pressures, with the logistics associated with e-commerce sales forcing retailers to spend heavily on fulfillment and deliveries. Retail sector margins outside of Amazon have been on a downtrend since 2021, with this year's margins expected to serve as a bottom and start recovering going forward. The start of Q2 coincided with heightened tariff uncertainty following the punitive April 2nd tariff announcements. While the onset of the announced levies was eventually delayed for three months, the issue has understandably weighed heavily on estimates for the current and coming quarters. The expectation at present is for Q2 earnings for the S&P 500 index to increase by +5.5% from the same period last year on +3.8% higher revenues. While it is not unusual for estimates to be adjusted lower, the magnitude and breadth of Q2 estimate cuts are greater than we have seen in the comparable periods of other recent quarters. Since the start of the quarter, estimates have come down for 15 of the 16 Zacks sectors, with the biggest declines for the Transportation, Autos, Energy, Construction, and Basic Materials sectors. The only sector experiencing favorable revisions in this period is Aerospace. Estimates for the two largest earnings contributors to the index – Tech & Finance – have also declined since the quarter began. Tech sector earnings are expected to be up +11.9% in Q2 on +9.9% higher revenues. While these earnings growth expectations are materially below where they stood at the start of April, the revisions trend appears to have notably stabilized lately, as we have been flagging in recent weeks. You can see this in the sector's revisions trend. Estimates for the Tech sector have stabilized and are no longer under the type of downward pressure that we were experiencing earlier. The Tech sector is much more than just any another sector, as it alone accounts for almost a third of all S&P 500 earnings. While estimates for this year have been under pressure lately, there haven't been a lot of changes to estimates for the next two years at this stage. Stocks have recouped their tariff-centric losses, although the issue has only been deferred for now. While some of the more dire economic projections have eased lately, there is still plenty of macro uncertainty that will likely continue to weigh on earnings estimates in the days ahead, particularly as we gain visibility on the tariffs question. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Target Corporation (TGT) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report McDonald's Corporation (MCD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
22-05-2025
- Business
- Yahoo
Zacks Earnings Trends Highlights: Target, Walmart and TJX
Chicago, IL – May 22, 2025– Zacks Director of Research Sheraz Mian says, "Total earnings for Retail sector companies already reported are up +11.5% from the same period last year on +5% higher revenues, with 56% beating EPS estimates and 52% beating revenue estimates" Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Total Q1 earnings for the 469 S&P 500 members that have reported results are up +11.5% from the same period last year on +4.3% higher revenues, with 74.2% beating EPS estimates and 62.5% beating revenue estimates. Companies struggled to beat consensus estimates this reporting cycle, with the Q1 EPS and revenue beats percentages for this group of 469 index members tracking below what we had seen from the group in other recent periods, as well as the average for this group over the preceding 20-quarter period. For the Retail sector, we now have Q1 results from 96% of the sector's members in the S&P 500 index. Total earnings for these Retail sector companies are up +11.5% from the same period last year on +5% higher revenues, with 56% beating EPS estimates and 52% beating revenue estimates. The +11.5% earnings growth pace for these Retail sector companies drops to a decline of -5.2% once Amazon's substantial contribution is excluded. The EPS and revenue beats percentages for the group are materially below historical averages for this same group of Retail sector companies. The earnings focus lately has been on the Retail sector, withTarget TGT becoming the latest big-box retailer to come out with results, which follows results from Walmart WMT, TJX Companies TJX and others. Target found a way to come up short of even the materially lowered estimates, which has become almost a recurring theme for them in the post-COVID period. They have been steadily losing ground, with Walmart and Amazon making inroads into its market share. Walmart, on the other hand, can't seem to do anything wrong, with its growing digital business not only providing an efficient channel to monetize its essentials-centric merchandise and attract an ever-growing share of the high-income households but also opening up growth opportunities in high-margin activities like advertising, third-party marketplace, and even data. Part of Target's problems is a result of consumer spending trends that have shifted away from the company's discretionary merchandise. It has an essentials business like groceries as well, but that business is far smaller than Walmart's. While roughly 60% of Walmart's revenues comes from its essentials merchandise, the ratio for Target is roughly 20%. While there is no question that the operating environment for vendors of discretionary-type merchandise remains difficult, Target's persistent run of weak quarterly results likely also reflects company-specific execution issues. After all, rivals like TJX are doing a lot better with comparable merchandise, and even Walmart is able to show better results in its general merchandise business than Target. The start of Q2 coincided with heightened tariff uncertainty following the punitive April 2nd tariff announcements. While the onset of the announced levies was eventually delayed for three months, the issue has understandably weighed heavily on estimates for the current and coming quarters. The expectation at present is for Q2 earnings for the S&P 500 index to increase by +5.5% from the same period last year on +3.8% higher revenues. While it is not unusual for estimates to be adjusted lower, the magnitude and breadth of Q2 estimate cuts are greater than we have seen in the comparable periods of other recent quarters. Since the start of the quarter, estimates have come down for 15 of the 16 Zacks sectors, with the biggest declines for the Transportation, Autos, Energy, Construction, and Basic Materials sectors. The only sector experiencing favorable revisions in this period is Aerospace. Estimates for the two largest earnings contributors to the index – Tech & Finance – have also declined since the quarter began. Tech sector earnings are expected to be up +12.1% in Q2 on +9.8% higher revenues. While these earnings growth expectations are materially below where they stood at the start of April, the revisions trend appears to have notably stabilized lately, as we have been flagging in recent weeks. The Tech sector is much more than just any another sector, as it alone accounts for almost a third of all S&P 500 earnings. While estimates for this year have been under pressure lately, there haven't been a lot of changes to estimates for the next two years at this stage. Stocks have recouped their tariff-centric losses, although the issue has only been deferred for now. While some of the more dire economic projections have eased lately, there is still plenty of macro uncertainty that will likely continue to weigh on earnings estimates in the days ahead, particularly as we get visibility on the tariffs question. Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Follow us on Twitter: Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Target Corporation (TGT) : Free Stock Analysis Report The TJX Companies, Inc. (TJX) : Free Stock Analysis Report Walmart Inc. (WMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
04-05-2025
- Business
- Yahoo
Zacks Earnings Trends Highlights: United Air Lines, A.O. Smith and 3M
Chicago, IL – May 1, 2025 – Zacks Director of Research Sheraz Mian says, "This earnings season is less about what companies earned in the first quarter of 2025 and more about sizing up the earnings impact of the uncertain macroeconomic backdrop." Note: The following is an excerpt from this week's Earnings Trends report. You can access the full report that contains detailed historical actual and estimates for the current and following periods, please click here>>> Here are the key points: Total Q1 earnings for the 256 S&P 500 members that have reported results are up +14.0% from the same period last year on +4.0% higher revenues, with 72.3% beating EPS estimates and 62.1% beating revenue estimates. We continue to believe that this earnings season is less about what companies earned in the first quarter of 2025 and more about sizing up the earnings impact of the uncertain macroeconomic backdrop. This is starting to show up in declining estimates for the coming periods. For 2025 Q2, total S&P 500 earnings are expected to be up +7.0% from the same period last year on +3.8% higher revenues. Estimates for the period have been coming down in a notable way, which aligns with the negative trend we experienced before the start of the Q1 earnings season. Estimates for full-year 2025 have also been coming down meaningfully in recent weeks, particularly since about mid-February, with estimates for 14 of the 16 Zacks sectors getting cut. Sectors suffering the most significant cuts include Energy, Tech, Finance, and Medical. Estimates have moved up for the Construction and Aerospace sectors. Uncertainty about the overall macroeconomic picture continues to be a significant drag on the earnings outlook as a whole, prompting analysts to cut their estimates for the current and coming periods. This uncertain environment makes it difficult for companies to provide explicit guidance for the coming periods. We had noted here how United Air Lines UAL had provided a two-pronged outlook, with one guidance a reiteration of their existing outlook and the second describing the earnings impact of a recessionary backdrop. Since then, A.O. Smith AOS and 3M MMM followed United Air Lines' lead by reiterating its outlook for the year, but 3M also provided a tariffs component that will potentially weigh on full-year EPS in the -2.5% to -5% range. A.O. Smith appears to have used price increases to offset the potential tariff impact that allowed it to maintain existing guidance. Many others have struggled with providing explicit guidance, for understandable reasons. We are starting to see this in the revisions trend both for the current period (2025 Q2) and full-year 2025. The emerging negative revisions trend appears to be broad-based, with Aerospace and Construction as the only sectors experiencing modest positive revisions. Of the sectors suffering negative estimate revisions, the case of the Tech sector is particularly significant as this sector had thus far been enjoying a very favorable revisions trend for more than a year now. For 2025 Q2, the Tech sector is currently expected to bring in +11.7% more earnings relative to the same period last year. This growth expectation is down from +14.2% on April 2nd. For full-year 2025, the expectation is for sector earnings to increase by +11.3% from the 2024 level, a decline from the +12.1% growth expected on April 2nd. We should note, however, that estimates have modestly inched up again over the past few days. While estimates for this year have started coming down lately, there haven't been a lot of changes to estimates for the next two years at this stage. Given all-around worries about the economy's growth momentum, it is reasonable to expect these estimates to be lowered further in the days ahead as the tariffs impact starts showing up in data. The modestly negative GDP read for the first quarter of the year primarily reflected the anticipatory effects of the trade regime, with importers stocking up on supplies ahead of the new levies taking effect. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report 3M Company (MMM) : Free Stock Analysis Report A. O. Smith Corporation (AOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
