By Callum Keown
Intel and Sandisk were among the biggest risers early Monday as technology stocks rebounded and investors looked ahead to the start of earnings season.
Intel was leading a chip-sector recovery, after two consecutive weekly losses for the PHLX Semiconductor Index (SOX), while memory-storage stocks Sandisk and Western Digital were also up around 4% after heavy losses last Thursday.
Despite the recent weakness, optimism over the tech sector's performance in earnings season has been growing. For Intel and Sandisk the enthusiasm has been greater than for most.
Earnings estimates for the information technology sector have jumped 10% since the second quarter began, second only to the energy sector's 50% rise, according to FactSet data.
Intel and Sandisk lead the tech sector in terms of percentage jumps in earnings-per-share estimates since March 31. Sandisk is also among the leaders on a dollar-level too, and it's keeping good company alongside Micron, Nvidia and Apple.
Analysts expect Intel to report EPS of 21 cents, up from 8 cents on March 31, and for Sandisk they see $33.80 up from $18.57.
The momentum trade works in both directions but if there's a substantial tech comeback in the weeks ahead, you can bet Intel and Sandisk will be among the biggest winners.
Write to Callum Keown at callum.keown@dowjones.com
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