The top-heavy valuations of the FANGs — Facebook FB, -0.17% Amazon AMZN, -0.18% Netflix NFLX, +1.02% and Google GOOG, +0.20% — has been a steady theme as the bull market continues to prove resilient.
“The median valuation of all the stocks currently among the Dow industrials has recently soared to a record high,” he explained, pointing to the chart below. “In fact, it’s now more than 20% higher than it was at the peak of the dot-com mania.” Felder, who once ran a multibillion-dollar hedge fund, says valuation extremes across the broader equity universe are more pervasive than ever. The obvious concern is that this won’t last forever, and the more valuations get stretched in one direction, the more violent the potential reversal.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Chipotle stock price target raised 40% to $700 at Stifel as momentum buildsChipotle Mexican Grill Inc.'s stock price target got a 40% boost at Stifel Nicolaus on Friday, with analyst Chris O'Cull saying he believes the momentum the fast-casual Mexican food chain saw in the fourth quarter has likely built in the first quarter. O'Cull raised his price target to $700, which is 0.5% below Thursday's closing price, from $500, while reiterating his hold rating. He raised his 2019 earnings-per-share estimate to $13.00 from $12.20 and his 2020 EPS estimate to $16.00 from $14.00, compared with the FactSet EPS consensus of $12.34 for 2019 and $15.61 for 2020. "Many of the factors benefiting December [same-restaurant-sales] performance should have been amplified in 1Q19, with greater [year-over-year] spend to support another new advertising campaign and expansion of digital ordering and delivery," O'Cull wrote in a note to clients. The stock, which was still inactive in premarket trade, has soared 63% year to date, while the S&P 500 has gained 15%. So is this a sell? Stock closed yesterday at $403. Forward PE of 45 for a fast food joint? A $30 billion burrito. Irrational exuberance))) Until the next Montezuma Revenge
Source: MarketWatch - 🏆 3. / 97 Read more »