CITIC Securities: The high earnings growth of U.S. stocks may no longer be concentrated only in leading technology companies.

PANews, October 11 news: CITIC Securities released a research report pointing out that with the performance of U.S. stocks during the domestic long holiday and their desensitization to interest rates, starting next week investors' focus will shift to the upcoming U.S. stock third-quarter earnings season. LSEG consensus expectations show that the year-on-year revenue and earnings growth rates of the S&P 500 for 26Q3 are 1.2%/45.0%, respectively, retreating somewhat quarter-on-quarter. At the industry level, the year-on-year earnings growth rates of energy, information technology, materials, and health care all exceed 50%. The high earnings growth of U.S. stocks may no longer be concentrated only in leading technology companies, and the earnings contribution of non-technology sectors is clearly strengthening.

For Hong Kong stocks, although the overseas rate hike cycle combined with the restart of AI momentum trading continues to weigh on liquidity, fundamental expectations have bottomed out, and the earnings growth expectations of major broad-based indices have begun to be revised upward. The adjustment of industry earnings expectations is significantly divergent, with some sub-sectors being revised upward, while earnings expectations for industries related to domestic demand still face downward revision pressure. The subsequent third-quarter results will be an important basis for judging the progress of recovery. We recommend that investors remain patient with Hong Kong stocks and expect that in the short term the dividend strategy will still relatively outperform.