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The Magnificent 7 contributes to about one-fifth of the S&P 500's profit growth (Knee search:spy) (IVV) (VOO), Citi said analysts are raising expectations.
These stocks – Apple (AAPL),Amazon(AMZN), alphabet (google) (Google), meta(Meta), Microsoft (MSFT), NVIDIA (NVDA), Tesla (TSLA) – Q1 earnings estimates increased by more than 29%. (NVIDIA has not yet reported its first quarter.)
But looking at the full year 2024, they have been „most focused on the underlying trajectory of the 'other 493 companies,'“ strategist Scott Kronert wrote in a note.
„For this group, full-year earnings growth was slightly less negative,“ Kronert said. “So the -6.8% earnings decline heading into the first quarter was -7%. So the message here is that a good positive surprise quarter doesn't directly translate into higher full-year growth expectations. However, it is stabilizing.”