3 ETFs With Rising Profit Forecasts

3 ETFs With Rising Profit Forecasts

In the essence of keeping it real, second-quarter earnings will probably be ugly for many sectors and industries because the U.S. economy crawled to a standstill for all of April and a significant portion of May.

Now, another wave of coronavirus cases is sweeping across the country, hammering some large, economically important states, such as California and Texas. With just days left in the quarter, there's not much time for analysts to further pare earnings estimates. However, there are some sources of strength among exchange-traded funds.

“Although the vast majority of ETFs--both domestic and internationally-focused funds--continue to see earnings forecasts decline as a result of the shutdown-induced recession, there are a few bright areas,” said the ETF Research Center (ETFRC) in a recent note.

Here are three ETFs ETFRC says are home to companies with rising earnings estimates.

Brand Value ETF (BVAL)

The Brand Value ETF BVAL tops the ETFRC list of funds with large concentrations of companies raising 2020 earnings estimates. On a percentage basis, BVAL the one-month change in 2020 earnings per share forecasts for BVAL components is about 27%.

BVAL follows the EQM Brand Value Index, which is a collection of companies with superior brand recognition and loyalty. Apple AAPLAmazon AMZNMicrosoft MSFT, and Facebook FB are among BVAL's top 10 holdings, confirming the fund is being driven by growth fare from a small number of high-flying sectors, but the strategy is working as BVAL is up almost 20% this quarter.

Roundhill BITKRAFT Esports & Digital Entertainment ETF (NERD)

Already one of this year's best-performing thematic ETFs, the Roundhill BITKRAFT Esports & Digital Entertainment ETF NERD is proving to investors that there's money to be made in video game investing and the companies themselves are making money as the one-month change in NERD components' EPS estimates for 2020 is almost 15%.

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