Zacks Highlights Semiconductors, Energy and Utilities for October

Zacks identified semiconductors, energy and utilities as sectors with earnings support in its October market outlook. The analysis said investors should focus on companies with visible earnings momentum and stable demand as higher Treasury yields raise financing costs.

FactSet projected S&P 500 earnings growth of 29.5% year over year in the third quarter and 27.6% in the fourth. But on Oct. 8, the index fell 0.5% amid oil-price volatility and elevated bond yields, the article said.

In semiconductors, the analysis pointed to demand for chips, networking and manufacturing equipment tied to AI infrastructure spending. NVIDIA reported fiscal second-quarter 2027 revenue of $96.2 billion, up 106% from a year earlier, and forecast $108 billion in third-quarter revenue. Taiwan Semiconductor Manufacturing reported July and August revenue increases of 44.7% and 53.3% year over year.

Zacks also highlighted energy amid geopolitical tensions and supply uncertainty. Brent crude fell to $103.53 a barrel early on Oct. 9 after gaining more than 4% in the previous session, according to Reuters. The article said HF Sinclair’s 2026 earnings-per-share estimate rose to $18.15 from $6.02 over the prior 60 days.

Utilities offer relatively predictable regulated earnings, according to the analysis, though capital-intensive projects face higher financing costs. Entergy plans $67 billion in investment during 2026–2029. Zacks cited data-center electricity demand, industrial electrification and grid modernization as longer-term supports for the sector.