Business is now bad at 9 companies – News


Business is now bad at 9 companies – News

S&P 500 investors are unsure what the Fed will do this week. But they remember one thing for sure: Some companies’ business is running like gangbusters right now.


Nine S&P 500 companies – including Norwegian Cruise Line (NCLH), Coterra Energy (CTRA) and Enphase Energy (ENPH) – are expected to double their third quarter earnings, ending soon compared to the same period a year earlier, S&P Global Markets Based on Investor’s Business Daily analysis of Intelligence and MarketSmith data. And it’s not just the impressive revenue growth. In addition, the net results of all companies should also experience growth.

“While we wouldn’t rule out a test of the S&P 500 June low, we view this as a potential buying opportunity and are focusing on areas that reflect a potential decline in economic growth and earnings,” said Megan Hornman, Chief Investment Officer. At Verdence Capital Advisors.

Find S&P 500 companies with explosive growth

Identifying the fastest growing companies in the S&P 500 is getting harder and harder. But it’s still possible.

There are only two weeks left in the third main trimester. And meanwhile, analysts believe earnings for S&P 500 companies will only rise 8.7% over the period, said John Butters, earnings strategist at FactSet. And that would be a great loss. If company revenue only increases so much, “it would be the first time the index has recorded sub-single-digit revenue growth since (the fourth quarter) of 2020 (when it rose by 3.2%),” Butters said.

Faced with major headwinds like inflation and rising rates, corporate earnings forecasts are down. “About (over the years-
(year) third quarter 2022 revenue growth rate is now lower than at the start of the third quarter,” Butters said.

But you can still find S&P 500 companies with big numbers.

Strong rise in the high seas

If you’re looking for companies launching jets in Q3, look no further than cruise operators.

The top three cruise lines in the S&P 500, including Norwegian Cruise Line, are expected to post strong revenue growth in the third quarter. None of them seem to grow less than 550%. That’s impressive given that S&P 500 revenue growth is unlikely to reach double-digit percentages.

Look at the Norwegians. Analysts expect the company, which operates around 30 vessels, to post revenue growth of 938% in the current quarter. If they’re right, that means the company will make $1.6 billion in revenue, up from just $153 million in the Covid-ravaged third quarter last year.

Importantly, Norwegian stocks are still down more than 26% this year. The shares of all other cruise ship operators have also declined this year. Why? Nervous investors also want to see sustained profits, which have been lost at sea over the years.

While Norwegian’s bottom line will improve more than 200% from last year’s third quarter, analysts say the company still looks set to lose 65 cents a share. Carnival, meanwhile, is expected to lose 15 cents a share in the quarter, and its stock is down 46% this year. Royal Caribbean, however, posted a profit of 19 cents per share in the quarter, thanks to a 554% increase in revenue. But stocks are still down 34% this year.

Energy values ​​are hot

Power also runs gangbusters in the S&P 500. It almost doesn’t matter.

Coterra Energy, an oil and natural gas explorer, is profiting from rising energy costs. Analysts expect earnings for S&P 500 companies to rise nearly 400% in the third quarter. And Coterra springs from earnings growth. Analysts expect the company’s earnings to rise 158% this quarter. Solid revenue and profit growth? Check This helps explain why stocks are up 52% ​​this year.

But it’s not just fossil fuels. Enphase Energy, a high-tech solar facility, saw revenue increase 75% in the third quarter. And profits are expected to increase by 82% during this period. Investors are ready to pay for this type of growth, considering that it is very low. Shares of the company are up nearly 73% this year.

So yes, many S&P 500 companies are slowing down. But that does not prevent anything from flying away.

S&P 500 companies are growing like crazy

All of these companies post revenue growth of more than 75% in the third quarter

Company Symbol Revenue Growth (estimated Q3 2022) EPS Growth (estimated Q3 2022) Segment Norwegian Cruise Line (NCLH) 937.8% 207.6% Consumer Discretionary Carnival (CCL) 799.2 163.4 Consumer Discretionary Carnival (CLC) 33.4 Consumer Discretionary Carnival 3.5. Energy (CTRA) 384.0 158.1 Albemarle Energy (ALB) 166.3 563.8 Materials VICI Properties (VICI) 94.4 72.2 Real Estate Live Nation Entertainment (LYV) 86.2 450.9 information (LYV) 86.2 450.9 Information technology. Enphas51 Enphase17 (Information Services) Enphae17 Hess51: IBD, S&P Global Market Intelligence

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