It's that time again. Second-quarter earnings season is just getting started, and many traders are trying to find ways to play off the low earnings expectations.
Analysts are awfully pessimistic, projecting that the S&P 500 will report a year-over-year earnings decline of 4.7 percent, according to FactSet. However, plunging oil prices play a large part in that shocking-sounding number, and if energy earnings are excluded, analysts expect to see growth of 2 percent.
"Energy headwinds notwithstanding, expectations for the S&P 500 profits are manageable and should be surpassed," Oppenheimer's head of institutional portfolio strategy, Andrew Burkly, wrote to CNBC on Thursday. "Profit carnage in the Energy sector shouldn't be sufficient to prevent the S&P 500 from exceeding another quarter characterized by overly conservative analyst estimates."
Burkly expects earnings expectations to be surpassed by 3 percent to 5 percent, "which should carry the equity market to new highs."
David Seaburg, head of equity sales trading at Cowen & Co., is of a similar mind.
"Given the people have baked in [disappointing] numbers, earnings season is a buying opportunity," Seaburg told CNBC. "I think it's OK for long-term investors to scoop up some bargains."