Corporate earnings have become markedly in focus ahead of second-quarter results, with market watchers anticipating shares to fall even further as companies report lower earnings and guidance. This earnings season is seen by many as a barometer of the health of the economy, following a series of rate hikes by the Federal Reserve – including a 75 basis point hike in June that rocked markets. stock market – causing recession fears. Trevor Greetham, head of multi-asset at Royal London Asset Management, said earnings would be “the next issue” for markets. He warned an “income recession” was coming, which could last for a while. Meanwhile, Goldman Sachs strategist Ben Snider noted that current earnings estimates are higher than they were at the start of the year — and he expects more earnings declines ahead. Stock Screener In this context, CNBC Pro has sought to find stocks with a proven track record of increasing earnings per share (EPS) and has seen numerous upgrades. by analysts rather than falling this year. We used FactSet data to sift through MSCI World stocks with EPS growth of more than 20% over the past 5 years. The list was then shortened to include only those companies for which analysts delivered more EPS upgrades than downgrades for this year. These stocks are also rated as buy by the majority of analysts, with the potential to average at least 20% upside based on consensus price targets, according to FactSet data, according to FactSet data. Stocks that make screens A variety of semiconductor stocks have created screens. The industry – one of the biggest winners in last year’s stock market bull run – has tumbled this year on concerns about an inventory glut and slow sales of consumer electronics. again. However, the sector’s long-term prospects remain bright given the chip’s wide range of applications – from PCs and smartphones, to home appliances and electric vehicles. They also play an essential role in the development of artificial intelligence and quantum technology. Chip stocks that appeared on display included Advanced Micro Devices (AMD), STMicroelectronics, ASM International, Synopsys and Taiwan’s Unimicron Technology. According to FactSet data, AMD has increased EPS by a whopping 92.1% over the past 5 years. Analysts have given the stock an average potential gain of 26.1%. Some financial stocks also appear on the screen. They include India’s ICICI Bank, British private equity firm 3i Group, Connecticut-based insurer WR Berkley and French investment group Eurazeo. Financial stocks are among the standout performers of 2021, as bumper corporate deals lead to higher investment fees while a recovering economy leads to less bad debt than expected. during the outbreak of the pandemic. Financial stocks also generally perform well in a rising interest rate environment as the interest income that banks earn on loans and investments grows faster than they pay to get financed. A variety of energy names also appear on the screen. The energy sector has been the best performer this year due to the sharp rise in oil prices. Read more Wall Street believes these slumping global stocks are set to rebound naming high-yielding stocks to weather the bear market Energy stocks that appear on the screen include ConocoPhillips, Devon Energy, Cheniere Energy and Pioneer Natural Resources in the Brazilian state-owned American company Petroleo Brasileiro , Canada Natural Resources and Chinese state-owned company PetroChina also made the list. Devon Energy has the highest potential gain at 122.5%, according to analyst estimates. The company has grown EPS of 28% over the past 5 years. Several industrial stocks also appeared on the screen of CNBC Pro. They include Danish shipping giant AP Moller-Maersk, Japanese shipping line Nippon Yusen and Texas-based energy infrastructure firm Quanta Services. Hong Kong-listed Orient Overseas International also made the list. The company is the parent company of Orient Overseas Container Line, one of the largest container shipping companies in the world. Auto parts and accessories retailer AutoZone is also on the list. The company has historically outperformed during bear markets, and Goldman Sachs believes the company is “defensively positioned” against weather-driven inflation due to its ability to weather a rise in inflation. Fertilizer stocks Nutrien and Corteva also appeared on the screen. Both stocks are expected to benefit from supply challenges through 2023 and beyond, according to Barclays. The bank describes Nutrien as a “best in class” operator that will continue to generate steady income from its retail business. It also sees Corteva as an “attractive” way to access the broader agricultural sector with limited downsides.