As third quarter earnings season kicks off this week, investors can expect impressive sector returns in industrials, energy, materials and information technology, Michael Thompson, managing director of valuation and risk strategy at Standard and Poors told CNBC Thursday.
"We have some great sector returns for this quarter," Thompson said. ""Industrials are leading—and that's a good news sign."
Thompson said he expects the industrials sector to post 52 percent earnings growth over the same quarter last year, while energy, materials and information technology will all post "40 percent plus growth."
The strategist, who is also a former director of research at Thomson Reuters, also noted that while revenue growth remains "somewhat anemic," companies "are just finding ways of expanding that bottom line."
"It's a testament that there is still efficiencies that can be found in these companies," Thompson said.