The COVID-19-induced economic downturn wiped out eight quarters of core earnings growth in just two quarters, as I highlighted in “S&P 500 Peaks As Earnings Trough.” This report focuses on the core earnings of each S&P 500 sector to narrow in on where the most damage was done.
My firm’s measure of core earnings leverages cutting-edge technology to provide clients with a cleaner and more comprehensive view of earnings. Investors armed with this measure of core earnings have a differentiated and more informed view of the fundamentals of companies and sectors.
Within the S&P 500, only the Technology sector saw a rise in core earnings since the end of 2019, as the shift to work-from-home drove growth in many technology companies.
Rankings the Sectors by Core Earnings Growth
Figure 1 ranks