Key Points:
- Second earnings season with 8%+ sales and 20%+ median EPS growth for S&P 500 companies—both at highest level since 2010–2011. Median EPS beat of 4%.
- Small caps even better with 10% sales and 23% median EPS growth for S&P 600 companies. Also better median EPS beat of 6%.
- Strong industrial production, GDP growth, earnings results, small-cap outperformance, and recent rotation to cyclical sectors (except for Consumer Cyclicals) are all bullish highlights.
- See attachment for actionable Focus List names ( WP, BL, MPWR, ASGN, etc.), other leading mid/large-cap industrial names ( CF, IR, XYL, UAL, etc.), and leading small caps ( EYE, SKYW, SAIL, GOLF, CBPX, etc.)
