These ETFs Could Be Earnings Growth Winners

Core Insights - The upcoming earnings season for S&P 500 firms is expected to be strong, with analysts increasing earnings per share (EPS) forecasts significantly [1][4] Group 1: Earnings Season Expectations - Analysts have boosted EPS forecasts for S&P 500 member firms, indicating a potentially strong earnings season [1] - July and August marked the first time since Q2 2024 that analysts raised aggregate EPS forecasts in the initial two months of a quarter [4] Group 2: ETF Opportunities - Investors may consider Invesco QQQ Trust (QQQ) and Invesco NASDAQ 100 ETF (QQQM) as potential beneficiaries of the upcoming earnings season, particularly due to strong performances from Nvidia and Broadcom [2][4] - Nvidia and Broadcom together account for nearly 15% of the holdings in QQQ and QQQM, suggesting these ETFs could be poised for success during earnings updates [2] Group 3: Sector Performance - Five out of eleven sectors saw an increase in their bottom-up EPS estimates for Q3 2025, with Information Technology (+4.4%), Energy (+4.0%), and Communication Services (+2.6%) leading the way [5] - Conversely, the Health Care sector experienced a significant decrease in EPS estimates (-7.2%), while Utilities showed no change [5] - The technology and communication services sectors, which make up about 79% of QQQ and QQQM, are expected to contribute positively to EPS growth [5] Group 4: Full-Year Earnings Revisions - Positive signs for full-year earnings revisions are noted in sectors like communication services and consumer discretionary, which together represent over 29% of the ETFs' portfolios [6][7] - Seven sectors increased their bottom-up EPS estimates for CY 2025, with Communication Services (+4.0%), Financials (+3.3%), and Consumer Discretionary (+3.0%) leading the increases [7]