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The Magnificent 7 contributes about one-fifth of the earnings growth to the S&P 500 (NYSEARCA:SPY) (IVV) (VOO) and analysts are ramping up expectations, according to Citi.
Those stocks – Apple (AAPL), Amazon (AMZN), Alphabet (GOOG) (GOOGL), Meta (META), Microsoft (MSFT), Nvidia (NVDA), Tesla (TSLA) – have seen Q1 earnings estimates rise more than 29%. (Nvidia has yet to report Q1.)
But looking at full-year 2024, they “have been most focused on the underlying trajectory of the ‘other 493,'” strategist Scott Chronert wrote in a note.
“For this cohort, full-year earnings growth has become slightly less negative,” Chronert said. “That is, the -6.8% earnings decline was at -7% headed into Q1. So, again, the message here is that a good positive surprise quarter is not translating directly into higher full-year growth expectations, but we are seeing stabilization.”
