Thanks, Goldman, but I’d rather own these 1,000 stocks than the Magnificent Seven

Which would you rather own: The 1,000 small and mid-sized U.S. companies that make up the S&P 1000 index, or the so-called “Magnificent Seven” big tech giants?

That has slashed their stocks from 34 times forecast earnings at the start of August to a bargain basement 27 times today.Goldman points out that the Mag Seven look cheap compared to their “long-term earnings growth rate,” which Wall Street pegs at 20%.The long-term investment return of U.S. stocks has averaged around 5% a year plus inflation.

By my math, within three years the Mag 7 would account for more than a third of the entire value of all U.S. listed companies. Within 7 years they would account for more than half.Microsoft stock currently trades at ten times the next twelve months’ expected sales. Forget earnings. For Nvidia, the chipmaker enjoying big AI-related demand, the figure is 14 times.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Magnificent Seven tech stocks haven't been this cheap in six years, Goldman Sachs strategists sayThe top megacap stocks haven't been this cheap in six years.
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Strong earnings will reverse decline in megacap tech stocks: Goldman Sachs By ReutersStrong earnings will reverse decline in megacap tech stocks: Goldman Sachs
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Goldman says interest rate expense is biggest threat to profitability, but these stocks are immuneThe higher-for-longer interest rate regime poses a direct threat to company profitability, but some stocks are a lot less vulnerable, according to Goldman.
La source: CNBC - 🏆 12. / 72 Lire la suite »