Despite Energy Price Woes, Companies Are Optimistic About Q1 Earnings

The stock market has been on pins and needles over the past six weeks as news about the war in the Middle East, energy prices, and President Donald Trump’s inconsistent predictions about the war have sent it whipsawing up and down.

The Chicago Board Options Exchange Volatility Index, or VIX, spiked above 30 in recent weeks, which indicates a very high level of uncertainty and stress in the stock market, and it remains above 20 as I write this, an elevated stress level. And CNN’s Fear & Greed Index remains in “fear” territory, not far from the gauge’s “extreme fear” level.

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Yet despite that high level of market anxiety, CEOs of large companies seem relatively optimistic about their companies’ financial performance. How do we know that? Well, first-quarter earnings season is approaching (it kicks off the week of April 13), and many publicly traded companies have issued guidance for the quarter in advance of their financial reports.

Overall, 110 of the 500 large U.S.-listed companies in the S&P 500 index have issued quarterly earnings-per-share (EPS) guidance for the first quarter (that guidance is a sort of pre-earnings announcement issued in advance of a company’s actual earnings report). That’s according to FactSet, which tracks S&P earnings reports.

Image source: Getty Images.

Of the 110 companies that issued earnings guidance, 59 (about 54%) issued positive EPS guidance, meaning they expect to report earnings that beat the consensus Wall Street estimate. That percentage is well above the five-year average of 42% issuing positive guidance and the 10-year average of 40%.

At the sector level, the information technology sector is seeing the most optimism in terms of positive earnings guidance. At the industry level, the semiconductors and semiconductor equipment industry (within the information technology sector) has the highest number of companies issuing positive EPS guidance.

Regarding negative guidance, 51 of the 110 companies that reported guidance said their earnings will come in below the consensus estimate. That marks the fewest S&P 500 companies issuing negative EPS guidance for a quarter since the fourth quarter of 2021, according to FactSet.

That’s very good news for the stock market and for investors, especially in a highly uncertain market like this one. Because, as we all know, share prices ultimately follow earnings. If that forward guidance from about one-fifth of the S&P 500 proves representative of the broader market, it could be a strong tailwind for share prices across the board.

Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:

  • Nvidia: if you invested $1,000 when we doubled down in 2009, you’d have $489,281!*

  • Apple: if you invested $1,000 when we doubled down in 2008, you’d have $49,600!*

  • Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $555,526!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, available when you join Stock Advisor, and there may not be another chance like this anytime soon.

See the 3 stocks »

*Stock Advisor returns as of April 6, 2026

The Motley Fool has a disclosure policy.

Good News: Despite Energy Price Woes, Companies Are Optimistic About Q1 Earnings was originally published by The Motley Fool

Source link

Visited 1 times, 1 visit(s) today

Related Article

Is Nvidia the Best Buy in the Entire Stock Market?

Nvidia (NVDA +2.59%) hasn’t been its normal self lately. Over the past few years, Nvidia has always been a top performer. However, it hasn’t lived up to those expectations so far in 2026. The stock is down about 5% this year and hasn’t really done anything since August 2025. Given the explosive returns Nvidia has

Jim Cramer Suggests American Express for “Exposure to An Affluent Consumer”

American Express Company (NYSE:AXP) is among the stocks Jim Cramer reviewed while discussing the Iran ceasefire that triggered a relief rally. Cramer was bullish on the stock during the episode, as he said: American Express, its customer base skews wealthier, and demand for premium products can stay strong even if the rest of the economy

What Is One of the Best Dividend Stocks to Buy With $5,000 Right Now?

When it comes to investing in the stock market, it’s not always about trying to achieve the highest levels of capital growth in your portfolio. Some people have the simple objective of owning companies that provide them with a nice income stream. Along those lines, here’s one of the best dividend stocks to buy with

AI Stocks Just Did Something That’s Been Witnessed Only 4 Times in 62 Years — Is It Finally Time to Sound the Alarm?

Roughly three decades ago, the mainstream proliferation of the internet changed America forever. After a long wait, the next game-changing technology has arrived: artificial intelligence (AI). Empowering software and systems with the tools to make split-second, autonomous decisions is a greater than $15 trillion global opportunity by 2030, according to PwC analysts. The rise of

Iran Conflict Threatens Lucrative Luxury Stock — Time to Panic, or Time to Buy?

Despite a fragile ceasefire currently, there’s still potential trouble brewing from the conflict in Iran. Mainstream automakers such as Ford Motor Company (F 0.90%) and General Motors (GM 0.40%) don’t do big business in the Middle East and remain relatively unimpacted by the current Iran conflict. It’s a different scenario for high-flying luxury stocks such

1 No-Brainer Dividend Stock to Buy if the Market Falls Again

We’ve certainly seen a handful of solidly bullish days of late. Broadly speaking, though, the market’s still at risk of a full-blown correction. At the very least, investors would be wise to remain defensively minded. To this end, there’s one particular dividend stock that will not only become more attractive on any marketwide pullback, but

The Likelihood of a Stock Market Crash Taking Shape Under President Donald Trump Is Rising — and There’s a Clear Reason Why

From a purely statistical standpoint, investors have prospered under President Donald Trump. During his first, non-consecutive term (Jan. 20, 2017 – Jan. 20, 2021), the widely followed Dow Jones Industrial Average (^DJI 0.56%), benchmark S&P 500 (^GSPC 0.11%), and growth-stock-inspired Nasdaq Composite (^IXIC +0.35%) gained 57%, 70%, and 142%, respectively. The first year of Trump’s

The Q1 earnings season in China’s A-share market is in full swing, with 11 listed companies forecasting a maximum year-on-year net profit increase of over 500%.

①The day after the release of their Q1 earnings forecast, Namicro Technology, Shannon Core Creation, Dongyue Silicon Materials, Deyi Co., Ltd., Fuchun Dyestuff & Weaving, Qiuyuan Power, and Dongshan Precision all closed with涨停 (limit-up). ②A summary of A-share listed companies expecting a year-on-year net profit increase of over 500% in Q1, along with reasons for

Could Investing $10,000 in SCHB Make You a Millionaire?

Recent stock market volatility and worries about an artificial intelligence (AI) bubble are driving many investors to diversify. If you want an easy, low-cost way to own a broadly diversified portfolio of stocks, the Schwab U.S. Broad Market ETF (NYSEMKT: SCHB) could be a solid choice. This low-cost index fund charges a rock-bottom expense ratio

Trump Promised Cheap Beef — The Cattle Trade Crushed The S&P 500 For Years

President Donald Trump promised to slash beef prices on day one of his election. Eighteen months later, cattle and retail beef prices have reached record highs. At $6.74 per pound, the current price of beef is about 18% higher than it was during President Joe Biden‘s last year in office. cattle and beef prices have

This Vanguard Index Fund Is Absolutely Crushing the S&P 500 This Year

The S&P 500 (SNPINDEX: ^GSPC) has fallen 1% year to date, dragged lower by particularly large losses in the financials, consumer discretionary, and technology sectors. However, the energy sector has added 30% in 2026 as the Iran conflict has pushed oil prices to a multiyear high. Consequently, the Vanguard Energy ETF (NYSEMKT: VDE) has crushed

Earnings Season Is Set to Be a Blockbuster, Investors Aren’t Prepared: DB

First-quarter earnings season is set to kick off next week, and Deutsche Bank says it’ll be a doozy. Loading audio narration… The bank is eyeing 19% year-over-year earnings growth — above the Wall Street consensus of 16%, which is already the most bullish level in four years. In a client note on Thursday, the bank

Boom or Bubble? Here’s Where Micron Stock Could Be in 5 Years.

The debate over Micron Technology‘s (NASDAQ: MU) future gets incorrectly framed all of the time. Bulls point to artificial intelligence (AI) model scale and data center buildouts. Meanwhile, bears remain skeptical of the cyclical nature of memory chips and warn of inventory gluts. I think both camps are indexing too heavily on yesterday’s demand curve.

A Healthcare Stock With a 6%-Plus Yield: Is the Dividend Safe?

Although high dividend yields are attractive to income seekers, they can sometimes signal that the dividend is unsustainable and a payout cut is on the way. Is that where we are headed with Pfizer (NYSE: PFE)? The healthcare giant’s poor stock market performance over the past few years has pushed its forward yield to a

Tesla Stock Big Short Opportunity, Stock Could Fall to $25, Analyst Says

Tesla stock is down 25% in 2026, and one market strategist thinks there’s more pain ahead through year-end. Loading audio narration… Gordon Johnson, the founder and CEO of market research firm GLJ Research, recommended “aggressively” shorting the EV maker’s stock last year, and he maintains that view in 2026. Johnson spoke to Business Insider about

0
Would love your thoughts, please comment.x
()
x