Tech Estimates Show How Fast Wall Street Sees Earnings Restored
- Group expected to rebound from profit slump, emboldening bulls
- Earnings will grow by 17% in second quarter 2020, BI says
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By now, the story of the S&P 500’s flirtation with a profit recession is out. Swelled by tax savings, earnings growth exploded last year, then slowed and reversed in 2019. Whether and how fast it can be restored has become, predictably, a Wall Street obsession.
One industry whose forecast trajectory makes bulls salivate is tech stocks, in the midst of what is expected to be the worst quarterly profit slump since 2016. For investors who believe in analyst prescience, the subsequent recovery that is forecast for computer and software income is worth watching.