Latest news with #VanguardFinancialsETFVFH
Yahoo
30-07-2025
- Business
- Yahoo
Strong Start to Q2 Earnings Season: 4 Sector ETFs to Play
With nearly 40% of S&P 500 companies having reported their Q2 earnings, the overall picture is one of continued strength and steady improvement. A higher-than-usual number of companies are surpassing analysts' expectations, and projections for both the current and upcoming quarters are being revised upward, per Earnings Trends issued on July 29, 2025. Among the 198 S&P 500 companies that have reported their Q2 results so far, total earnings are up 7.0% compared to the same quarter last year, driven by a 5.5% increase in revenues. Additionally, 82.8% of these companies have exceeded EPS estimates, while 79.8% have surpassed revenue forecasts. The percentage of these 198 S&P 500 companies surpassing both EPS and revenue estimates is notably higher than the historical norm. Specifically, the Q2 EPS beat rate of 82.8% exceeds the 20-quarter average of 80.1%, while the revenue beat rate of 79.8% is well above the historical average of 69.0% for this group. Sector ETFs in Focus Against this backdrop, below we highlight a few sector-based exchange-traded funds (ETFs) that should enjoy the tailwind of rising Q3 estimates and strong year-over-year growth. Finance – Vanguard Financials ETF VFH – Zacks Rank #2 (Buy) In the Financial sector, Q2 earnings have been reported by companies accounting for 64.5% of the sector's market capitalization in the S&P 500. These firms have posted a 17.6% year-over-year increase in earnings, alongside a 5.8% rise in revenues. So far, 90.0% have beaten EPS estimates, while 76.0% have exceeded revenue forecasts. This is a remarkably better performance from the Finance sector relative to other recent periods, with Q2 earnings growth and the percentage of revenue beats grabbing attention in particular. Tech – Technology Select Sector SPDR ETF XLK – Zacks Rank #1 (Strong Buy) In the Technology sector, Q2 results are in for companies representing 22.4% of the sector's market capitalization within the S&P 500. These companies have reported a 15.2% increase in earnings and a 10.6% rise in revenues compared to the same quarter last year. Note that, 90.9% have exceeded EPS estimates, and 100% have topped revenue expectations. Consumer Discretionary – Consumer Discretionary Select Sector SPDR ETF XLY – Zacks Rank #3 (Hold) For the Consumer Discretionary sector, Q2 earnings are expected to be 109.7% in Q2 on 2.5% higher revenues. Q3 earnings are expected to be up 1.1% from the same period last year on 2.1% higher revenues. Aerospace – iShares U.S. Aerospace & Defense ETF ITA – Zacks Rank #2 For the Aerospace sector, Q2 earnings are expected to be 24.8% in Q2 on 11.5% higher revenues. The Q3 earnings are expected to surge 250.9% year over year on 9.9% higher revenues. 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 Technology Select Sector SPDR ETF (XLK): ETF Research Reports Consumer Discretionary Select Sector SPDR ETF (XLY): ETF Research Reports iShares U.S. Aerospace & Defense ETF (ITA): ETF Research Reports Vanguard Financials ETF (VFH): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
03-07-2025
- Business
- Yahoo
Banks Lift Payouts Amid Successful Stress Test: ETFs in Focus
America's top banks announced plans to raise their third-quarter dividends following successful results from the Federal Reserve's latest annual stress test. The results indicate that the banks have sufficient capital to weather severe economic disruptions, including recession, high unemployment, and market instability. JPMorgan Chase, the largest U.S. bank, disclosed in a regulatory filing that it will increase its dividend to $1.50 per share, up from $1.40. In addition, the bank unveiled a new $50 billion share repurchase program, effective immediately, with no set end date. JPMorgan CEO Jamie Dimon stated that the share buyback gives the bank flexibility to return capital 'as we see fit,' reinforcing confidence in the financial system's resilience. Other banking giants followed suit with their own dividend hikes: Bank of America plans to increase its dividend by 8%, raising it to 28 cents per share. Wells Fargo will lift its dividend to 45 cents, up from 40 cents. Morgan Stanley will raise its dividend to $1 per share and has approved a $20 billion share buyback with no fixed duration. Goldman Sachs will boost its dividend to $4 compared to the previous $3. Citigroup will increase its payout to 60 cents per share from 56 cents. According to the Fed's 2025 stress test, banks on average maintained a Common Equity Tier 1 (CET1) capital ratio of 11.6%, well above the regulatory minimum of 4.5%. The six largest banks in the country all showed double-digit capital ratios, reflecting their ability to endure financial shocks. The Federal Reserve is currently working on changes to its stress testing methodology. In a proposal released in April, the central bank suggested averaging stress test results over two years, a move aimed at reducing outcome volatility and increasing predictability. Although the rule-making process is still in progress, the Fed said that if the results from 2024 and 2025 had been averaged, banks would have needed to hold more capital to satisfy the regulatory thresholds. Against this backdrop, financials-based exchange-traded funds (ETFs), such as Financial Select Sector SPDR Fund XLF, Vanguard Financials ETF VFH and Invesco KBW Bank ETF KBWB, should gain 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 Financial Select Sector SPDR ETF (XLF): ETF Research Reports Invesco KBW Bank ETF (KBWB): ETF Research Reports Vanguard Financials ETF (VFH): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
