The earnings season in the United States have left us some interesting conclusions.
Although some sectors, such as Industrials or Utilities, still lag behind in terms of growth, other sectors show the first considerable increases in earnings.
In fact, S&P 500 earnings are growing 46.3%, 10% more than expected. Here, the so-called "base line effect" is very important, since we start from last year's profits fully affected by the pandemic.
FAANG dominate the market
The clear winners of this earnings season are the Mega Cap. The results have far exceeded analysts' forecasts, and the market has rewarded this companies with substantial increases.
Despite the fact that many investors were already aware of this, the resilience of these companies in the face of the Covid crisis has been demonstrated here. It is even showing that these competitive advantages are stronger than what the market discounted,
As is commonly said in the markets, good companies not only overcome crises, but come out of them stronger than they were before, and this is a good example of this.
Anyway, who knows if, when we enter the next crisis, these same companies will be the ones that will resist it or if, spontaneously, others will emerge that will overcome them.