Wall Street is entering the Q1 reporting season on a wobbly note as the imposition of tariffs has introduced significant volatility into the markets, leading to concerns about a potential recession. Results from a recent InvestingPro screen weren’t very encouraging, either, writes Jesse Cohen, senior financial analyst at Investing.
From a technical standpoint, the S&P 500 remains at a critical level below its 200-day moving average. After dropping below this key indicator in early March and hitting a low of 4,835 on April 7, the index staged a rally.
Source: Investing.com
However, analysts caution this may only be a technical rebound from oversold conditions. Given the current economic backdrop, I used the InvestingPro Stock Screener to search for companies that are forecast to deliver growth of more than 25% in both earnings per share and revenue. In total, just 29 stocks showed up.
Source: InvestingPro
Some of the notable names to make the cut include Nvidia Corp. (NVDA), Eli Lilly & Co. (LLY), Palantir Technologies Inc. (PLTR), Boeing Co. (BA), Micron Technology Inc. (MU).
With the S&P 500 down about 10.5% year-to-date and markets briefly entering bear market territory, this earnings season could determine whether we’re experiencing a temporary pullback or the beginning of a more significant downturn.
One thing is for certain – the market’s extreme sensitivity to trade policy developments suggests volatility will remain elevated in the coming weeks.
