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The Q2 earnings picture has been emerging stronger than expected, with most companies beating consensus earnings and revenue estimates, though the beat percentages have been relatively on the lower side. Total Q2 earnings from 465 S&P 500 members or 94% of the index’s total membership are up 7.7% from the same period last year on 14.5% higher revenues, with 77.2% beating EPS and 68.4% surpassing revenue estimates.
Although the overall Q2 picture indicates stability and resilience in key earnings drivers like consumer and business spending, we started seeing signs of weakness in both metrics in recent months (read: Inflation Cools But Food Prices Up Since 1979: ETFs in Focus).
Given this, several equity ETFs have impressed with their performance and generated handsome returns over the trailing one-month period. Below are five ETFs that have gained from strong earnings results.
Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report)
Energy sector is the top contributor to Q2 earnings and revenues with 267.9% and 76.7% growth, respectively. Invesco Dynamic Energy Exploration & Production ETF offers exposure to companies involved in the exploration and production of natural resources used to produce energy. It has risen 24.4% in a month, buoyed by earnings strength.
Invesco Dynamic Energy Exploration & Production ETF has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Total Q2 earnings for the basic materials sector are up 16.9% from the same period last year on 18.3% higher revenues, with 82.4% of the companies beating on EPS and 70.6% surpassing revenue estimates. SPDR S&P Metals & Mining ETF offers broad exposure to the U.S. metal and mining industry and has gained 19% over the past month (read: 3 Sector ETFs Look Decent In Light of U.S. Manufacturing Data).
AdvisorShares Restaurant ETF is an actively managed and the only ETF investing exclusively in the restaurant and foodservice industry, including restaurants, bars, pubs, fast food, take-out facilities, food catering services and more. The fund is up 10.3% over the past month on earnings strength coupled with a travel rebound and a rise in consumer spending.
Earnings for 99.6% of the consumer discretionary sector are up 15.6% from the same period last year on 22.5% higher revenues, with 71% of the companies topping EPS estimates and 64.5% beating on revenues.
iShares U.S. Transportation ETF offers investors exposure to U.S. airline, railroad and trucking companies. Total earnings from 100% of the sector’s total market capitalization are up 139.6% on 32.5% higher revenues, with 73.3% of the companies beating on earnings and 93.3% exceeding the top-line estimates. Notably, the revenue beat ratio is the third highest this earnings season.
This ETF provides equal-weight exposure to utilities. It has gained 11.1% over the past month on investors’ flight to defensive investment. Being a low-beta sector, it is relatively protected from large swings (ups and downs) in the stock market and is thus considered a safe haven amid economic or political turmoil (read: Utility ETFs Scaling New Highs).
Though the sector registered a 0.2% decline in earnings this season, its revenues grew a decent 15.9% and supported the rally in RYU. Further, the sector’s revenue beat ratio is strong at 96.3%, representing the second highest of all the sectors.
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5 ETF Winners of Q2 Earnings Season
The Q2 earnings picture has been emerging stronger than expected, with most companies beating consensus earnings and revenue estimates, though the beat percentages have been relatively on the lower side. Total Q2 earnings from 465 S&P 500 members or 94% of the index’s total membership are up 7.7% from the same period last year on 14.5% higher revenues, with 77.2% beating EPS and 68.4% surpassing revenue estimates.
Although the overall Q2 picture indicates stability and resilience in key earnings drivers like consumer and business spending, we started seeing signs of weakness in both metrics in recent months (read: Inflation Cools But Food Prices Up Since 1979: ETFs in Focus).
Given this, several equity ETFs have impressed with their performance and generated handsome returns over the trailing one-month period. Below are five ETFs that have gained from strong earnings results.
Invesco Dynamic Energy Exploration & Production ETF (PXE - Free Report)
Energy sector is the top contributor to Q2 earnings and revenues with 267.9% and 76.7% growth, respectively. Invesco Dynamic Energy Exploration & Production ETF offers exposure to companies involved in the exploration and production of natural resources used to produce energy. It has risen 24.4% in a month, buoyed by earnings strength.
Invesco Dynamic Energy Exploration & Production ETF has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
SPDR S&P Metals & Mining ETF (XME - Free Report)
Total Q2 earnings for the basic materials sector are up 16.9% from the same period last year on 18.3% higher revenues, with 82.4% of the companies beating on EPS and 70.6% surpassing revenue estimates. SPDR S&P Metals & Mining ETF offers broad exposure to the U.S. metal and mining industry and has gained 19% over the past month (read: 3 Sector ETFs Look Decent In Light of U.S. Manufacturing Data).
AdvisorShares Restaurant ETF (EATZ - Free Report)
AdvisorShares Restaurant ETF is an actively managed and the only ETF investing exclusively in the restaurant and foodservice industry, including restaurants, bars, pubs, fast food, take-out facilities, food catering services and more. The fund is up 10.3% over the past month on earnings strength coupled with a travel rebound and a rise in consumer spending.
Earnings for 99.6% of the consumer discretionary sector are up 15.6% from the same period last year on 22.5% higher revenues, with 71% of the companies topping EPS estimates and 64.5% beating on revenues.
iShares U.S. Transportation ETF (IYT - Free Report)
iShares U.S. Transportation ETF offers investors exposure to U.S. airline, railroad and trucking companies. Total earnings from 100% of the sector’s total market capitalization are up 139.6% on 32.5% higher revenues, with 73.3% of the companies beating on earnings and 93.3% exceeding the top-line estimates. Notably, the revenue beat ratio is the third highest this earnings season.
iShares U.S. Transportation ETF has gained 7.6% in a month and has a Zacks ETF Rank #2 (Buy) with a High risk outlook (read: Wave of Solid Q2 Earnings Pushes Transport ETFs Higher).
Invesco S&P 500 Equal Weight Utilities ETF
This ETF provides equal-weight exposure to utilities. It has gained 11.1% over the past month on investors’ flight to defensive investment. Being a low-beta sector, it is relatively protected from large swings (ups and downs) in the stock market and is thus considered a safe haven amid economic or political turmoil (read: Utility ETFs Scaling New Highs).
Though the sector registered a 0.2% decline in earnings this season, its revenues grew a decent 15.9% and supported the rally in RYU. Further, the sector’s revenue beat ratio is strong at 96.3%, representing the second highest of all the sectors.