Big Tech Earnings Wave To Push Nasdaq ETFs Higher

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After being beaten down on the tech sector’s lofty valuation concerns last month, the tech-heavy Nasdaq Composite Index scaled new record highs ahead of the optimism over the big tech earnings wave with more room for upside. The index set its first record since February, representing the 13th record close of 2021.

This has confirmed the end of an 11% correction in the index that began after its previous high on Feb 12, with the index closing at a low on Mar 8.

Deluge of Earnings

Tesla Motors (TSLA - Free Report) posted the biggest profit in its history shrugging of the global chip crisis when it released Q1 earnings after the closing bell on Monday. The electric carmaker beat estimates on both earnings and revenues.

Tech giants like Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) are scheduled to release their earnings today after the bell while Facebook (FB - Free Report) and Apple (AAPL - Free Report) will report on Apr 28. Amazon (AMZN - Free Report) is slated to report on Apr 29. Total Q1 earnings from the group of these five companies are expected to be up 43.5% on revenue growth of 31.4%. This reflects a solid improvement from the Q4 earnings growth of 41.2% and revenue growth of 29%.

Further, many other semiconductor companies like Texas Instruments Incorporated (TXN - Free Report) and Qualcomm Incorporated (QCOM - Free Report) are scheduled to report this week. Texas Instruments has a Zacks Rank #2 (Buy) and an Earnings ESP of +4.25% while Qualcomm has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. Per our proven model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ETFs in Focus

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

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