JPM EE/MI 2Q24 Earnings Pregame

Key Points

Market focus on relative valuation and earnings revisions rather than absolute valuation levels
Barbell strategy identifies expensive growth stocks (ETN/VRT/HUBB) and idiosyncratic stories (3M/JCI)
Favorable revisions expected to continue despite near-term market skepticism
Industrial equipment plays with high backlogs normalizing while destocked semiconductor markets recovering faster
Datacenter-related revisions expected to be sustained as capacity buildout accelerates

Even earnings misses likely to be met with flat reactions rather than sustainable declines
Recovery in industrial tech slower than semiconductor markets due to destocking normalization
Backlog-heavy sectors facing inventory normalization headwinds

File: JPM-EE_MI_2Q2 Earnings Pregame_ 15Jul2024.pdf
Location: Dropbox/2. Semi/Datacenter/
Pages: 134
Date: July 15, 2024
Analysts: C. Stephen Tusa Jr., Patrick M. Baumann, Chigusa Katoku, Chandreyee Sengupta