firms will handily top second-quarter earnings expectations in the coming weeks thanks to energy, materials and multinational companies, according to JPMorgan.
"We believe stabilizing USD, rising oil prices, and low expectations going into this earnings season improve the odds of more companies beating on both top-line and margins compared to recent quarters," JPMorgan's Dubravko Lakos-Bujas wrote in a note to clients Thursday.
The strategist forecasts S&P 500 second-quarter earnings per share of $30 versus the consensus estimate of $28.71. That would be flat year-over-year growth for the quarter.
"If companies actually deliver positive surprises inline with our expectation, 2Q16 will be the first quarter in two years to reverse the growth trend from negative to positive (second derivative rising)."
However, Lakos-Bujas said the better-than-expected results will not be across all industries.
