1Q2024 US Institutional Investor Sentiment Survey
How are investors positioned ahead of earnings announcements?
Every quarter, the UBS US Sector Specialist team conducts a survey amongst Institutional Investors to gauge their views on the broader market outlook and expected investment returns prior to earnings announcements. Watch the videos to learn more.
Every quarter, the UBS US Sector Specialist team conducts a survey amongst Institutional Investors to gauge their views on the broader market outlook and expected investment returns prior to earnings announcements. Watch the videos to learn more.
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Rob O’Dwyer, Financials Sector Specialist
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Jason Finkelstein, Consumer Sector Specialist
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Allyson Gordon, Industrials and Materials Sector Specialist
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Rob Ruple, Technology Sector Specialist
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Catherine Gordon, Energy and Resources Sector Specialist
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Kelsey Perselay, Telco, Media and Internet Sector Specialist
Financials
- Insurance brokers, alternative asset managers and investment banks are viewed as overvalued
- This quarter, market response is heightened for stocks that have struggled to meet elevated expectations
- Investors lack conviction in Banks sub-sector on forward outlook to justify current valuations
Consumer
- Sentiment in the quick-service restaurant sub sector has turned negative as consumers no longer see the value with rising prices
- More than half of respondents believe Consumer Staples and Consumer Discretionary will continue to underperform the S&P500
- Household and Personal Care is now viewed as the favored sub sector in Consumer Staples
Industrials and Materials
- Respondents expect steady performance in Industrials and uncertainty in the Materials sector
- Investors are not expecting Q1 results to materially shift overall 2024 defined positioning
- Valuation remains a large source of investor discomfort with only 7% of respondents view Industrials as undervalued
Technology
- Nearly half of investors surveyed anticipate Q1 earnings will come in above expectations, while a third believe tech stocks will outperform the S&P 500
- Investor conviction remains positive across the Technology sector aligning with industry returns; S&P Tech Index +7% YTD
- Software valuation has shifted to undervalued and sentiment remains bullish
Energy and Resources
- 62% of investors anticipate a bullish shift for the Energy sector post earnings
- Power stocks are dominating conversations as the AI data center theme remains front and center
- Apathy persists in the Renewables sector
Telco, Media and Internet
- AI remains the dominant topic of conversation, as the group of AI winners is up 30% YTD
- Nearly half of investors believe we are in the early-mid cycle in the AI trade, yet half believe these AI stock names are overhyped
- Sentiment remains consensus; investors are comfortable in positions and current book compositions are unlikely to change post Q1 earnings results