The second-quarter earnings season is off to a positive start, with more than 70 percent of companies topping analysts' estimates so far.
Wall Street once again appears to have set the bar too low, setting up many opportunities for traders to benefit from a post-earnings surge.
"While consensus expectations point to a dismal earnings season, we believe the underlying growth trend is far healthier," said Jonathan Golub, chief U.S. market strategist at RBC Capital Markets.
At present, analysts predict there will be a 2 percent decline in earnings per share among S&P 500 companies. Excluding energy, however, that figure jumps to a 5 percent increase, according to Thomson Reuters I/B/E/S.