4 Sectors Set To Disappoint This Earnings Season

The worst of performers are expected to come from sectors such as Airlines, Energy, Technology and Financials. According to Estimize data, these sectors have been on the move, as witnessed by negative year-over-year growth estimates, heavy downward revisions and a history of missing expectations. The combination of these factors have typically led to a significant underperformance.

1. Airlines

Between terror attacks and health scares, people are more reluctant to travel, especially overseas. The strong US dollar has also hurt topline growth and with the Brexit aftermath expected to loom for the next few years, the airlines should continue to underperform

2. Energy

A lot has occurred in the energy market that has caused the U.S. oil giants to tumble. Low crude prices and the fallout in Doha have put pressure on Chevron and Exxon Mobil's earnings. Both revenue and earnings have steadily declined over the past 2 years, tracking the lower prices in oil.

3. Technology

Technology is a big part of everyone’s life but that hasn’t made it the best financial investment. A central theme in this sector has been decelerating growth and weak forward guidance. Firms like GoPro and Fitbit are in bearish territory and do not plan to get out of it for now.

4. Banks

Not enough can be said about the banks. Since the 2008 financial crisis, a slew of regulation and litigation has held back Wall Street. The largest concerns of the last year have been the strong U.S. dollar, low interest rates, loan loss reserves from energy weakness and macroeconomic risks.

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