- Analysts tell Reuters the tech sector will recover from recent pullbacks with upcoming earnings reports wooing back investors worried about overvaluation and crowding.
- The sector had dropped 4% since early June compared to a 5% growth in financials and 3% growth in healthcare.
- Semiconductors drove tech’s Q2 earnings up 11.2% with a growth rate of 7.2%, according to Reuters estimates. Compare the figures to a 7.9% earnings improvement for the S&P 500 with a 4.6% growth rate.
- Analysts say tech isn’t as overvalued as investors fear as the sector currently trades at 18.1x earnings compared to 17.8x for the broad market.
- Estimates put tech’s profits at 28% of the total S&P 500 earnings growth in Q2.
- Tech ETFs: HACK, ROBO, SOCL, SKYY, CIBR, BOTZ, PNQI, IXP, XT, SNSR, EMQQ, IPK, IXN, BST, ARKW, IST, GAMR, ARKK, ARKQ, FONE, BIGD, WEAR, FINX, FINQ, HAKK, AAIT, HAKD, IMED.
- Now read: Escaping Reality: Investing In Gaming's Secular Trends
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