Cmind’s Q2 EPS Model Turns Bullish on Health Care, Cautious on Energy

Q2 Begins: What Changed in Our Sector Predictions vs. Q1?

Hi everyone,

It’s a quiet week for earnings, but an ideal moment to step back and assess how our model performed in Q1 and how it's repositioning for Q2.

Cmind’s EPS predictor delivered strong Q1 accuracy: over 70% for large- and mid-cap names, with small caps following at 63%. These results reinforce the model’s strength when complete and timely data are available. But the real value lies in where we’re headed next.

Sector Rotation: How Q2 Predictions Have Shifted

With Q2 earnings season ramping up, we’ve already published EPS forecasts for 3,952 companies. This gives us an early opportunity to compare our model’s stance across sectors between Q1 and Q2.

The table below highlights how our predicted beat rates have moved, based on updated filings, peer earnings, guidance, and market sentiment.

Key Takeaways:

• The model is increasingly bullish on Health Care and Communication Services, driven by stronger post-Q1 signals and peer performance.

• Predictions for Technology and Real Estate remain solid and largely unchanged.

• We’re now more cautious on Energy, Materials, and Consumer Discretionary, where recent guidance has weakened outlooks.

This kind of directional shift is why dynamic prediction matters; our model continually updates to reflect real-world inputs, not backward-looking assumptions.

Prediction Coverage Expands in Q2

We’ve now published EPS forecasts for nearly 4,000 companies for Q2 earnings. Below is a heatmap showing our sector-level coverage and the relative strength of beat signals.

Each square represents a company; color intensity reflects beat likelihood. Access it here.

What’s On Deck This Week

Just a few companies report this week, making this a low-volume, high-volatility window for opportunistic trades:

🔼 Likely Beats

• PRGS (Progress Software) – 76% – Information Technology

• SMPL (Simply Good Foods) – 66% – Consumer Staples

⚖️ Marginal

• UNF, SLP, GBX all sit near the 55–60% threshold

🔻 Likely Miss

• ZENV (Zenvia) – 35% – Information Technology

With limited names on the calendar, sharp movements may occur if expectations misalign with consensus sentiment.

About the Model

Cmind AI’s EPS predictor integrates over 150 variables—including 10-Qs, governance factors, transcripts, and peer signals—across 4,400+ public companies. Predictions are updated daily, and backtests show significant Sharpe and Sortino ratio improvements when used in portfolio construction.

Want access to the full dataset or enterprise use cases?
Reach out to us at: [email protected]