Nvidia’s profits are growing rapidly. But not the fastest in the S&P 500.
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Beating the Market: How to Find Stocks That Outperform
Seven S&P 500 companies, including Travelers (TRV), Catalent (CTLT) and Progressive (PGR) are expected to report at least 140% higher earnings per share in the second quarter, according to an Investor’s Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
The quarterly earnings growth expectations of all these companies exceed Nvidia’s by 135%. Forget the fact that Nvidia stock is up about 150% this year, blowing away the gains of all seven S&P 500 stocks with huge earnings growth forecasts for the second quarter.
Finding Nvidia’s Biggest Earnings Growth
Rising premiums and more cautious underwriting policies appear to be beneficial for insurers’ profits in the second quarter.
Two of the S&P 500 companies expected to post earnings growth higher than Nvidia are from the insurance sector. Travelers is on track to report second-quarter earnings of $2.96 per share. If that happens, it would be 4,826% higher than the 6 cents per share the company earned in the same period a year ago. Shares are up just 7.1% this year.
And then there is insurer Progressive. The analysts covering the stock think the company will earn $2.14 per share in the second quarter. That is 414% more than in the same period last year.
Not just insurance with explosive growth
Catalent, a Somerset, N.J.-based pharmaceutical company, is also poised for a bumper quarter of earnings growth. Analysts expect Catalent to earn 56 cents per share in the period, up nearly 519% from the same period a year ago. Catalent isn’t quite as much of an undiscovered gem as some of the others on this list, though. The stock is up 25% this year.
Catalent’s earnings growth not only beat Nvidia’s forecast, it’s miles ahead of the 8.8% second-quarter earnings growth expected for the entire S&P 500.
And that is the crux of the matter. Investors don’t have to settle for the single-digit earnings growth expected from the S&P 500. Some S&P 500 companies’ profits can — and will — grow much faster than that.
Profits on fire
Fastest earnings growth estimates for the S&P 500 for the second quarter
| Company | Ticker | Sector | Second Quarter 2024 EPS Growth (estimated) |
|---|---|---|---|
| Travelers | (TRV) | Financial details | 4,825.6% |
| Katalent | (CTLT) | healthcare | 518.7% |
| Progressive | (PGR file) | Financial details | 413.9% |
| Tyson Food | (TSN) | Consumer goods | 324.7% |
| Hess | (HES-) | Energy | 296.3% |
| Estee Lauder | (EL) | Consumer goods | 283.0% |
| Goldman Sachs | (GS) | Financial details | 184.1% |
| Nvidia | (NVDA) | Information Technology | 134.7% |
