As second-quarter earnings season gathers pace, investors are watching whether the market can build on recent strength. The Nasdaq rose on Tuesday as chip names including Micron, AMD, and Nvidia drew buying interest, while traders looked ahead to results from major technology companies such as Alphabet and Tesla. According to the report, the index is still hovering just below its 50-day moving average as the earnings calendar begins to intensify.
The latest Zacks data points to another strong quarter for technology, with the Magnificent 7 expected to deliver total Q2 earnings growth of 28.7% year over year on revenue growth of 25.1%. The report also notes that the broader market is not relying solely on those large-cap names: excluding the Magnificent 7, the rest of the S&P 500 is still projected to post Q2 earnings growth of 25.3%. That setup, according to the article, could give bullish investors room to push the market to fresh highs during the heart of earnings season and later in 2026.
A simple screen for narrowing the list
Because more than 200 stocks can carry a Zacks Rank #1 at any given time, the article suggests using a tighter screen to find more tradable ideas. The filter combines three requirements: a Zacks Rank of 1, positive changes in current-quarter estimates over the past four weeks, and a top-five ranking for broker rating changes over the same period. The report says this approach, available in the Research Wizard under the name bt_sow_filtered zacks rank5, is designed to isolate stronger candidates from the larger pool of highly ranked stocks.
One reason the screen begins with Zacks Rank #1 is its long-term track record. According to the report, that ranking has produced an average annual return of about 24.4% since 1988. In the context of a busy earnings season, the article argues that combining earnings estimate revisions with broker sentiment can help investors focus on stocks that are already drawing support from analysts while broader market attention remains centered on corporate results.
Source: nasdaq.com
