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

Market Context

• 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

Source

• 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

Related

• _MOC-datacenter
• jpm-datacenter-deep-dive-part1
• jpm-datacenter-deep-dive-part2-100gw