CITIC Securities: High earnings growth in US stocks may no longer be concentrated only in leading tech companies

PANews reported on October 11 that CITIC Securities released a research note pointing out that, as US stocks decoupled from interest rates during the domestic holiday, investors' focus will shift next week to the upcoming US Q3 earnings season. LSEG consensus estimates show the S&P 500's 26Q3 revenue and earnings YoY growth reached 1.2%/45.0% respectively, easing somewhat QoQ. At the sector level, energy, information technology, materials and healthcare all posted earnings YoY growth exceeding 50%, suggesting that high earnings growth in US stocks may no longer be concentrated only in leading tech companies, and that non-tech sectors' earnings contribution is clearly strengthening.

For Hong Kong stocks, although the overseas rate-hike cycle combined with a restart of AI momentum trading keeps liquidity under pressure, fundamental expectations have bottomed out, and earnings growth expectations for major broad-based indices have begun to be revised upward. Sector earnings expectation adjustments are notably divergent: some sub-sectors have been revised upward, while earnings expectations for domestic-demand-related industries still face downward revision pressure, and the upcoming Q3 results will be an important basis for judging the progress of recovery. We suggest investors remain patient with Hong Kong stocks and expect short-term dividend strategies to continue to outperform relatively.