Strong Earnings Support Gains in Growth ETFs | ETF Trends

Growth stock-elated exchange traded funds stood out Thursday as upbeat earnings out of chipmaker Nvidia helped lift the technology segment, and positive retail earnings reflected strength in consumer spending.

Among the standouts on Thursday, Reuters reports that Nvidia shares jumped after beating quarterly estimates and forecasting strong fourth-quarter revenue on expectations of growth in its data center business and investments in the metaverse.

“The stock market should resume its year-end rally based on the good earnings season and good macro news that’s continuing to flow,” Peter Cardillo, chief market economist at Spartan Capital Securities, told Reuters. “Inflation has gone up, but for now, the consumer is not showing any signs of pulling back. And that’s a key.”

Additionally, strong retail earnings from Macy’s Inc and Kohl’s Corp also added to the momentum after raising annual sales and profit projections.

“Consumers are taking whatever is on the shelves at whatever prices they are listed at, so that’s good for retailers and margins,” George Cipolloni, a portfolio manager at Penn Mutual Asset Management, told the Wall Street Journal.

U.S. markets have wobbled this week as positive earnings helped offset concerns about rising consumer prices. While overall results have been strong, some major companies like Target have been weighed down by the supply-chain problems and rising costs.

Investors interested in the growth style can turn to targeted strategies like the American Century Focused Dynamic Growth ETF (FDG). FDG is a high-conviction strategy that invests in early-stage, rapid-growth companies with a competitive advantage and high profitability, growth, and scalability.

Additionally, investors can look to the American Century STOXX U.S. Quality Growth ETF (NYSEArca: QGRO). QGRO’s stock selection process is broken down into high-growth stocks based on sales, earnings, cash flow, and operating income, along with stable-growth stocks based on growth, profitability, and valuation metrics.

For more news, information, and strategy, visit the Core Strategies Channel.