Nvidia's profits are growing rapidly. But it's not the fastest in the S&P 500.
Seven S&P 500 companies, including Travelers (TRV), Catalent (CTLT) and Progressive (PGR), expect earnings per share to rise by at least 140% in the second quarter, according to Investor's Business Daily, which analyzed S&P Global Market Intelligence data and MarketSurge data.
All of these companies have quarterly profit growth forecasts that beat Nvidia's 135%. Nvidia shares are up about 150% this year, outpacing all seven S&P 500 stocks that are expecting huge profit growth in the second quarter.
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Surpass Nvidia's earnings growth
In the second quarter, higher premiums and more prudent underwriting will be a boon for insurers' profits.
Two S&P 500 companies are expected to report profit growth that outpaced Nvidia, both from the insurance industry. Travelers is expected to report second-quarter earnings of $2.96 per share. If realized, it would be 6 cents higher than the company's earnings per share of 4,826 cents in the year-ago quarter. The company's stock is up just 7.1% this year.
The same goes for another insurance company, Progressive. Analysts who track the stock believe the company will earn $2.14 per share in the second quarter. This is 414% higher than the same period last year.
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It's not just the explosive growth of the insurance industry
Catalent, a pharmaceutical company based in Somerset, New Jersey, is also bracing for an excellent quarter of profit growth. Analysts believe Catalent will earn 56 cents per share during the period, up nearly 519% from the same period last year. However, Catalent is not an untapped dark horse like the other companies on this list. The company's stock has risen 25% this year.
Catalent's profit growth not only beat Nvidia's expectations, but far exceeded the 8.8% second-quarter earnings growth expected by the S&P 500 as a whole.
That's the bottom line. Investors don't have to settle for the expected single-digit earnings growth of the S&P 500. Some S&P 500 companies can, and will, make profits that grow even faster.
Profits soared
S&P 500 Q2 profit growth forecast for the fastest.
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