The Q3 earnings season hasn't exactly been a great one, at
least so far. A number of key bellwethers have reported
lackluster results, giving further credence to the idea that
markets are headed lower.
Furthermore, it isn't like the earnings weakness has been
concentrated in any one sector or region of the broad economy
either. Technology, usually a bastion of growth, has been among
the weakest, headlined by Intel,
, and Google (
according to our own Sheraz Mian
round out the weakness in a variety of other market segments,
underscoring just how widespread the earnings misses have been
this time around.
In fact, of the roughly 20% of S&P 500 stocks that have
reported so far, the average earnings growth rate (yoy) has been
-2.8%, while the rate drops to just
-4.2% when you exclude the financial sector
Given this trend for U.S. corporate earnings, and the lack of
help from both Europe and major emerging markets like China,
where can an investor go for growth, or at the very least
stability, in this current environment?
Do any of the following choices sound good to you for high
growth pockets in this uncertain time?
CHIPOTLE MEXICN (CMG): Free Stock Analysis
DU PONT (EI) DE (DD): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis
GENL ELECTRIC (GE): Free Stock Analysis
INTL BUS MACH (IBM): Free Stock Analysis
To read this article on Zacks.com click here.
This sector has been a strong performer as of late thanks to
better data and hopes for a rebound in the segment (see more on
this in a recent
Real Time Insight post on housing investing
Has this space bottomed out as well?
is surging in Wednesday trading.
This industry has seen decent earnings; is it time to bet on
Emerging Markets -
Yes, China is showing signs of weakness but there are plenty of
smaller emerging nations that are still growing strong (see
more on this in
Andean ETFs: A Better Way to Play Emerging
Some other segment
-- Let us know in the comments below!!