According to UBS analysts, the current earnings season will be a turning point for market sentiment. Despite the flurry of earnings reports, UBS remains optimistic about the potential for strong corporate performance to bolster investor confidence in the markets.
This week marks an important period as some 180 companies on the list will reveal their results, including prominent members of the Magnificent Seven. UBS emphasizes that the results of these earnings announcements could play a critical role in restoring market confidence.
One of the standout performers during this earnings surge was Tesla (NASDAQ:), which rose in after-hours trading despite declining earnings. Investors reacted positively to Tesla’s plans to accelerate the release of new, more affordable car models. The reaction underscores the market’s appetite for forward-looking growth strategies, even amid near-term financial results that may be below expectations.
Overall, the results so far are in line with UBS’s optimistic forecasts. The firm still expects earnings per share growth of 7% to 9% for the S&P 500 during the quarter, positioning the market for strong earnings growth of 9% through 2024.
Looking ahead, UBS “expects April to be a bubble for markets as the S&P 500 is still on track to end the year at 5,200, up from 5,070 at Tuesday’s close.”
UBS also maintains a favorable outlook on small-cap stocks, believing they are poised for a recovery once interest rates begin to decline and earnings growth gains broader momentum across the market.
remove advertising
.