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Power Play: Which earnings may surprise to the upside

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

About 20 percent of the S&P 500 companies have reported Q2 earnings and so far, 70 percent have beat analysts' forecasts.

Ben Mandel, global strategist at J.P. Morgan tells CNBC's "Power Lunch" on Wednesday, he sees parallels between this earnings season and Q1, where results are likely to clear a low bar.

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"S&P sales growth may well surprise on the upside. Consensus sees just 1.4 percent growth in Q2, which looks low," Mandel said. The surprises may come from the energy, industrials and consumer discretionary sectors.

"While we have a relatively bearish view on oil, current expectations set a relatively low bar for energy companies to meet and 2015 EPS expectations have actually been drifting up. Industrials have also been dragged down by the oil capex story and the stronger dollar, so the same logic would apply there," Mandel said.

He also believes economic fundamentals remain robust for consumers and share price performance has been strong within the consumer discretionary sector.

Energy and industrials are down 10 percent and 4 percent year-to-date, while consumer discretionary is up 9 percent.