Most S&P 500 sectors are forecast to post second-quarter earnings per share gains compared to a year earlier, according to the latest S&P Global Market Intelligence data.

Analysts predict eight of 11 sectors will report year-over-year EPS gains, contributing to an overall rise in S&P 500 EPS of 8.7% compared to the second quarter of 2023. While companies including PepsiCo Inc., JPMorgan Chase & Co. and others have reported their latest quarterly results earlier in July, the bulk of S&P 500 earnings will be reported later in the month and into August.

The communication services sector, which counts Meta Platforms Inc. and Netflix Inc. as constituents, is expected to post the highest gain at 21.4%. Industrials, materials and real estate sectors are expected to see year-over-year EPS declines. The real estate sector is forecast to post the largest sectorwide drop at 19.2%.

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Largest S&P 500 companies set for earnings growth

The mega-cap companies that dominate the index are all poised for EPS growth. NVIDIA Corp. is set to post the largest annual EPS gain among the five largest S&P 500 companies at 135.5% over the second quarter of 2023. The semiconductor company has grown in value as companies increasingly adopt generative artificial intelligence technology.

Amazon.com Inc. is set to post the next-highest EPS growth among the largest S&P 500 companies, with a forecast rise of 56% and revenue growth of 10.6%.

Extreme ends

Analysts predict that property and casualty insurer The Travelers Cos. Inc.'s quarterly earnings will show the most improvement year over year among S&P 500 constituents, swinging to an expected profit after a 'historic' nearly $1.50 billion hit from catastrophe losses in the second quarter of 2023.

Meanwhile, healthcare real estate investment trust Ventas Inc. is forecast for the largest decrease in quarterly earnings, with expected quarterly normalized EPS of 1 cent falling more than 94% year over year.