Investors are closely watching the ongoing third-quarter earnings season in the S&P 500, where the spotlight is shifting from NVIDIA to other companies that are poised for remarkable revenue growth. Surprisingly, it’s not just NVIDIA leading the charge; three other S&P 500 firms are expected to showcase exceptional performance this earnings cycle.
Among these companies, Super Micro Computer (SMCI) stands out with a staggering forecast of 205% year-over-year revenue growth, projecting $6.6 billion in sales for the third quarter. This impressive growth rate far outstrips that of NVIDIA, which analysts anticipate will experience an 82% revenue increase during the same period. Micron Technology (MU) is also on the radar, with expectations of a 91% revenue boost, securing its place as a significant growth player after Super Micro.
Newmont (NEM), a materials company, is also expected to post a remarkable 88% growth in revenue, illustrating that strong earnings potential isn’t limited to the tech sector. This diverse growth across various sectors emphasizes the resilience and expanding nature of the current S&P 500 market rally.
It’s essential to note that the overall growth for the S&P 500 is projected at just 4.6%, making the double-digit growth of companies like Super Micro and Micron even more noteworthy. As the earnings announcements approach—Super Micro is set to report on October 29—investors are particularly keen on assessing these growth rates.
Despite potential growth being overshadowed in recent weeks by stock price declines—resulting in an RS Rating of only 20 for Super Micro and 57 for Micron—both companies still maintain impressive Earnings Per Share (EPS) ratings of 99 and 80, respectively. Their year-to-date stock performance tells a positive story, with Super Micro up more than 65% and Micron rising 27%.
Interestingly, the anticipation for growth extends beyond just the technology stocks. Newmont’s anticipated 88% revenue increase highlights that significant gains can also be identified in sectors like materials. Additionally, other S&P 500 categories such as communications services, healthcare, and utilities are expected to see revenue growth rates of 8%, 6.8%, and 6.7%, respectively.
For those investors on the lookout for growth opportunities, it’s becoming clear that NVIDIA isn’t the only game in town as companies across a spectrum of industries are rallying to deliver robust financial results.
As earnings season progresses, the focus will continue to be on these emerging growth stories, with Super Micro, Micron, and Newmont leading the way. This shift represents a compelling landscape within the S&P 500, where diversification in growth sectors could offer investors promising avenues for capitalizing on the continued market expansion.