This is where the earnings grow

As we are at the end of the Q1 result season, it becomes visible what companies in the S&P 500 are currently growing their earnings. The clear sector winners are probably the least appreciated: companies in the energy sector. Energy companies have indeed been growing their earnings by 155% over the last 12 months while consumer discretionary companies has seen their results falling 40%. Over the next 12 month energy stocks will probably not be able to reproduce the trick, however they will continue to produce solid cash flows for their shareholders. And valuations remain attractive. Totalenergies for example, our biggest holding in the European Value fund, trades at 5.7 this year’s earnings and carries a dividend yield of 5.5%.